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The NSR Measures is an important provision for foreign investment security review in China, helping to achieve a wider opening of foreign investment, but in terms of the division of areas requiring security review, the word "important" is mainly used in the regulations, without quantifying the relevant criteria.
Tricor understands the enforcement authority will be more flexible during the implementations and enforcements. However, foreign investors should fully understand whether the field they are investing in involves security issues before investing, and carry out applications for security clearance in accordance with the law, so as to prevent their investments from being terminated due to security clearance issues during the investment process.
With the opening up of the financial sector in recent years, a large number of foreign funds have entered China for investment activities. Unlike general investment activities, the investment of funds may involve multiple fields and levels of investment, therefore, foreign funds should consider the impact ofsecurity review on the arrangement for a specific project before investing, so as to make appropriateinvestment decisions.
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