Merger and acquisition (M&A) review activity picked up in the last few months of 2011. Recent regulatory changes and landmark cases have shed further light on how the PRC Ministry of Commerce (MOFCOM) will regulate and enforce M&A transactions going forward.
China Market Intelligence
PRC government officials addressed some foreign company concerns about their ability to expand their investments in China. Last month, the Ministry of Commerce (MOFCOM) and State Administration of Foreign Exchange (SAFE) released a new notice that regulates foreign-invested holding companies and foreign exchange.
China has finalized long-awaited revisions to a key foreign direct investment policy document that offers few reductions in foreign ownership restrictions or services sector openings. The 2011 Catalogue Guiding Foreign Investment in Industry was jointly released on December 29, 2011 by the PRC National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM).