Guidelines aim to block foreign hostile takeovers, monopolies
Central government guidelines on foreign investment to be unveiled this year will include provisions to deter monopolies and hostile takeovers, according to a top official.
'The government needs to develop regulations to ensure the healthy development of mergers and acquisitions involving foreign parties, and to prevent foreign monopolies and hostile takeovers,' Li Zhiqun, director-general of the Ministry of Commerce's foreign investment administration department, said yesterday.
Briefing an online news conference on China's foreign investment policy, Mr Li said the government needed to maintain control of certain important industries and business sectors to ensure national economic security.
'China must promulgate at the earliest date regulations on foreign mergers and acquisitions to encourage fair competition, and to standardise and advance mergers and takeovers,' he said.
Mr Li said his ministry, together with other authorities, was accelerating the revision of investment guidelines for foreign direct investment and the government would make a series of policy adjustments on the issue this year to promote the quality of FDI.
But he also cautioned that such policy changes could affect foreign investment. 'Currently, our nation's work in attracting foreign investment faces many uncertainties because our policy adjustments in many areas will have a certain impact on it,' Mr Li said.