The White House has issued an Executive Order on Addressing the Threat from Securities Investments that Finance Certain Companies of the People’s Republic of China, expanding on the existing ban on investing in certain Chinese companies. This Executive Order addresses the use of Chinese surveillance technology in facilitating human rights abuses and repression around the world. The US will have the power to prohibit US persons investing in Chinese companies that may be seen to…
On 26 February 2021, the UK parliamentary International Relations and Defence Committee (a House of Lords Select Committee) launched an inquiry into the UK’s security and trade relationship with China. The inquiry will consider the UK Government’s relationship with China, including the latter’s significance as a trade partner and source of investment for the UK. It will also examine the UK’s security interests vis-à-vis China as well as evaluating how UK policy towards China has…
In brief On 19 December 2020, the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) jointly issued the Measures for Security Review of Foreign Investment (“New Measures”) (the official Chinese text is available here; and an unofficial translation is available here). The New Measures, effective from 18 January 2021, represent China’s continued efforts to provide a clearer legal regime for national security review comparable to similar procedures in other developed economies,…
On 30 December 2020, the EU and China reached an agreement “in principle” for a new EU-China Comprehensive Agreement on Investment (“CAI”) (see our previous update here). The CAI concludes seven years of investment negotiations, that begun in October 2013, and is expected to come into force later this year. In its press release (see here), the EU stated that the CAI was the “most ambitious agreement that China has ever concluded with a third…
Recent media reports indicate that the EU and China are making progress in long-running negotiations towards a deal to remove barriers to foreign investment. Agreement may potentially be reached by the end of 2020, after seven years of often difficult talks. Negotiations regarding an EU-China investment agreement initially kicked off in 2013. The aim of the agreement is to provide certainty, protection and predictable market access for EU and China investors, with the key sticking…
On 6 November 2020, the UK Government launched a website (see here) designed as a guide for digital and tech firms doing business in China. The guidance explains that the UK and China can develop new technology to tackle climate change for example, create new jobs and rebalance the British economy and includes case studies showing the scale of opportunities linked to China’s growing economy. However, it also seeks to raise awareness of what the…
On November 13, 2020, the Trump Administration issued Executive Order 13959, “Addressing the Threat from Securities Investments that Finance Communist Chinese Military Companies” (the “China Securities EO”), which aims to prevent US investors from financing the development of the People’s Republic of China’s military, intelligence, and security capabilities by prohibiting purchases of securities of certain “Communist Chinese military companies.” This development builds on US Government concerns over China’s civil/military fusion and access to US capital…
From 13 to 17 October 2020, the 22nd Session of the Standing Committee of the 13th National People’s Congress (“NPC”) deliberated on the third review draft (草案三次审议稿) of China’s Export Control Law (“ECL”) before its final passage into law on 17 October 2020. The ECL will come into effect on 1 December 2020. This is the first comprehensive and consolidated export control law in China. Prior to the law’s enactment, export controls were imposed via…