On January 18, 2021, the Measures for the Security Review of Foreign Investment (hereinafter referred as the Measures) promulgated by the National Development and Reform Commission and the Ministry of Commerce formally came into effect. The Measures outline the investment fields that are subject to security review and provide additional details that extend the reach of previous laws, such as the Foreign Investment Law and the National Security Law. Although the Measures provide a clear scope and application procedure, due to the complexity of this new system, it might be prudent for foreign invested companies or potential foreign investors to proactively assess their implications.
一、《安审办法》明确了外国投资者的主动申报义务
The investment fields that are subject to security review
根据《安审办法》，在以下领域的外国投资者有主动申报的义务：
Investment reaching certain conditions would trigger an obligation of proactive report. The condition varies in different investment fields. The following table provides a summary for your reference.
在以上领域的投资，通过安全审查是该投资行为合法有效的前提条件，根据《安审办法》第7条第1款，在工作机制办公室作出决定前，投资人不得实施投资。
Foreign investments subject to security review shall report to the Office of the Working Mechanism. Until the authority makes a decision, the investor should not make the investment or start operating the business.
Although the Measures mainly aim at new foreign investments, existing businesses could also be affected. The rules and specific requirements for a retrospective application of the law are not spelled out and indeed such a cases are likely to be rather rare. According to Art.15 of the Measures, third parties are also entitled to propose a security review. Thus, if an investor omits to comply with the requirement to report to the Working Mechanism a third party could trigger the process.
外国投资者通过股票交易市场购买境内企业股票，可能影响国家安全的，也需面临国家安全审查。其具体适用办法仍待进一步制定。
Foreign investor’s transaction in the stock market could also be subjected to a security review, if it seen as potentially affecting the national security. The specific rules are to be formulated.
二、《安审办法》将填补之前的投资监管漏洞
The Measures supplement former laws and regulations
《安审办法》将有可能覆盖既往的一系列监管空白（参见下表中绿色部分）。
The new regulation extends the scope of the security review in the following circumstances (see the green areas in the chart):
“安审办法”实施后，不同形式的投资将面对不同的监管变化。
The Measures would bring different regulatory changes to different types of investment:
对并购类型的外商投资而言，相比之前的外商投资安全审查制度，新增的负有主动申报义务的领域包括：重要文化产品与服务、重要信息技术和互联网产品与服务、重要金融服务。
For Merger & Acquisitions, the Measures adds new investment fields that would be subject to security review. The newly added fields include important cultural products and services, important information technology, important internet product and service, as well as the important financial service.
对于绿地投资而言，即使投资的行业不在负面清单之中，仍有可能属于需主动申报的领域。另外，《安审办法》的“关键技术”是一个《负面清单》中没有对应项目的领域，值得外国投资者特别注意。
For greenfield investments, the Measures go beyond the scope of the Negative List by extending the area for scrutiny.
三、申报流程
The Reporting Process
《安审办法》第七条、第八条、第九条对外国投资的申报流程作了详细规定。下图为根据规定制作的流程说明。
The reporting process that foreign investors should follow is described in Art.7 and Art.8 of the measures. The following chart offers a brief illustration for your reference.
根据《安审办法》第6条，申报过程中需要准备好以下材料：
The following information should be provided within the process as per Art.6 of the Measures:
四、其他值得外国投资者关注的问题
Other issues of special concen
在实践中《安审办法》对外国投资的影响是复杂而具体的。一些表面上看来与国家安全无关的行业，也可能受到《安审办法》的影响。
The impact of the Security Review Measures on investments in China is complex and specific. For example, although some sectors might not be obvious candidates for security review, they might still be affected:
汽车雷达生产研发的合规问题Compliance in the development and production of automotive radars.
雷达是汽车自动驾驶系统不可或缺的一部分。但是雷达的研发具有军民两用的性质，可能因涉及军工领域而需要依规向工作机制办公室主动申报。
Radar is an indispensable part of autopilot system. However, the research and development of radars has dual-use nature and thus foreign investment in this field might need to be proactively reported to the Office of the Working Mechanism in accordance with regulations.
工业用算法开发的合规问题Compliance issues on industrial algorithm development
工业数据的处理离不开算法的开发。算法既属于基础技术，又可用于信息的加密和解密，具有一定的军事性质。因此，投资领域涉及算法开发时，外国投资者有必要做好相应的合规准备。
Nowadays, the processing of industrial data is almost inseparable from the deployment of algorithms. Complex algorithm could not only be used for basic technology applications, but also for encryption and decryption of information for military purpose. Therefore, when the investment field involves algorithm development, it is necessary for foreign investors to assess whether such development could be subjected to the new regulation.
保持与监管机构的积极沟通Maintain active communication with regulatory agencies
尽管《安审办法》第5条提供了官方的咨询途径，但安全审查的内容涵盖了投资方案、经营范围、投资的基本情况等一系列事项，其申报仍是一个复杂而审慎的工作。为避免不必要的疏漏和损失，投资者可保持与监管机构的积极沟通。
Art. 5 of the Measures provides an opportunity for the investor to consult with the Office of the Working Mechanism before formally reporting an investment that needs to undergo a security review. Thus, the law provides a chance to discuss with the implementing body the necessity of filing a report which could safe a considerable amount of time and effort.
声明：
本文章仅为交流探讨之目的，不得视为广悦律师事务所或其律师出具的正式法律意见，任何仅依照本文的全部或部分内容而做出的行为及因此带来的后果均由行为人自行负责。
