Competition law developments in East Asia

China security review enters into force

When it came into effect in August 2008, China's Antimonopoly Law introduced a comprehensive system of competition merger control for parties to concentrations reaching certain thresholds. Amongst the merger control provisions, Article 31 of the Antimonopoly Law provides for an additional review of concentrations by foreign investors where state security is involved. More than two years after the law's entry into force, Article 31 has finally been brought into effect by the State Council, which announced an implementing regulation in February establishing the framework for the security review regime. That regime took effect on 5 March.

Early in March, the Ministry of Commerce also issued interim procedural rules for security review applications, which complement the regulation issued by the State Council in February. The security review regime remains opaque however, and adds to the existing uncertainty for foreign investors