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.
Companies in China faced a year-end scramble to enroll their foreign employees in China’s social insurance scheme before January 1, 2012, after the Ministry of Human Resources and Social Security (MOHRSS) released a notice to pressure local authorities to impose fines on companies whose foreign employees were not registered by the end of 2011.