International expansion deals under new scrutiny in China

International Expansion learned today (from The Wall Street Journal) that China has enacted new rules for evaluating, on national security grounds, foreign firms intending to merge with or acquire Chinese entities. Under the rules, China's National Development and Reform Commission and the Ministry of Commerce, the two ministries that already review mergers under the antitrust rules, will lead the new national-security-review committee.The committee will review mergers and acquisitions targeting key companies in the defense, agriculture, energy, resources, infrastructure, transportation and equipment-manufacturing and technology industries, the statement said. It will apply a broad definition of national security, assessing the impact of deals on economic stability, social order and China's ability to research and develop key technologies for national defense, according to the rules.