On 3 February 2011 a new circular was published by China's State Council, providing for the implementation of a new security review process in relation to certain foreign investments in China. Under this new process, a new panel will be set up to consider whether relevant foreign investment transactions raise national security and other concerns, and the panel will be empowered to block or impose conditions on those transactions if significant concerns are identified. Key aspects of the new security review process, which takes effect on 5 March 2011, are summarised in this legal update.

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