On February 3, 2011, the Notice of the General Office of the State Council regarding the Establishment of the Security Review System for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (the “Notice”) was issued by the General Office of the State Council. The Notice, effective 30 days thereafter, requires for a national security review by a ministerial panel (the “Ministerial Panel”) for any merger or acquisition of a domestic enterprise by a foreign investor (an “M%26A”) that may have potential impact on China's national security. If an M%26A transaction has exerted, or is likely to exert, significant impact on China's national security,the Ministerial Panel would order relevant departments to take measures to eliminate the influence of the transaction on the national security, including termination of the transaction and transfer of relevant equity or assets.
