Article 35 of the Foreign Investment Law provides for the "security review of foreign investments that affect or may affect national security". On 18 January 2021, the Order No.37 of 2020, "Measures for the Security Review of Foreign Investment" entered into force. The Order establishes a new body dedicated to national security reviews (the NSR Office) jointly headed by the NDRC and the Ministry of Commerce. The new framework establishes both a sector-specific mandatory review for all foreign investments in the defense industry or related sector irrespective of value, and a mandatory review mechanism for certain acquisitions in specified sectors that include "important agricultural products, important energy and resources, critical equipment manufacturing, important infrastructure, important transportation services, important cultural products and services, important information technology and Internet products and services, important financial services, key technology, or any other important field related to national security".
On 1 September 2021, review requirements for operations involving companies headquartered in or having branches in China as well as local companies engaging with foreign investors changed: If these operations imply a transfer of "important data" overseas, the transaction is henceforth subject to a security assessment by the Cyberspace Administration of China. The change results from the entry into force of China's Data Security Law on 1 September 2021. Among others, the Law establishes a classification system of different types of data in relation to their national security sensitivity. The classification makes some of these data fall under the scope of China's Cybersecurity Law., with the described consequences for their transfer abroad in the context of international investment. This Law applies to both foreigners and nationals of China. 
Previously in 2018, the State Council in China had already implemented 'Working Measures for Outbound Transfers of Intellectual Property Rights (for Trial Implementation)', which conditioned the outbound transfer of certain kinds of intellectual property rights to a specific examination regime. The examination applied to the transfers of IPRs occuring in the context of exporting technologies, or in foreign investors' acquisitions of domestic enterprises. The examination focused on the transfer's impact on China's national safety and capacity for the creation and development of key technologies in important industries.
"Article 2. This Law shall apply to foreign investment within the territory of the People's Republic of China (hereinafter referred to as the territory of China).
The term "foreign investment" as mentioned in this Law refers to investment activities conducted directly or indirectly in China by foreign natural persons, enterprises or other organizations (hereinafter referred to as foreign investors), including the following situations:
(1) A foreign investor establishes a foreign-invested enterprise in China alone or jointly with other investors;
(2) Foreign investors acquire shares, equities, property shares or other similar rights and interests of enterprises within the territory of China;
(3) Foreign investors alone or jointly with other investors invest in new projects in China;
(4) Investment in other forms prescribed by laws, administrative regulations or the State Council.
The term "foreign-invested enterprises" as mentioned in this Law refers to enterprises wholly or partly invested by foreign investors and registered and established within the territory of China in accordance with Chinese laws.
[...]
Article 4. The state implements a pre-establishment national treatment plus negative list management system for foreign investment.
The pre-establishment national treatment referred to in the preceding paragraph refers to the treatment given to foreign investors and their investments at the stage of investment access no less than that given to domestic investors and their investments; Special access management measures for investment implementation. The state shall give national treatment to foreign investment outside the negative list.
[...]
Chapter IV - Investment Management
Article 28. Foreign investors are not allowed to invest in fields that are prohibited from investing in the negative list for foreign investment access.
Foreign investors should meet the conditions stipulated in the negative list to invest in the areas where investment is restricted by the negative list for foreign investment access.
Fields outside the negative list for foreign investment access shall be managed in accordance with the principle of consistency between domestic and foreign investment.
Article 29. Foreign investors who need to go through investment project approval and filing shall follow the relevant state regulations.
Article 30. Foreign investors who invest in industries and fields that require licensing according to law shall go through relevant licensing procedures according to law.
Relevant competent departments shall review foreign investors' applications for permits in accordance with the same conditions and procedures as those for domestic investment, unless otherwise stipulated by laws and administrative regulations.
[...]
Article 35 The state establishes a foreign investment security review system to conduct security reviews of foreign investments that affect or may affect national security.
The security review decision made in accordance with the law is final.
[...]
Chapter VI - Supplementary Provisions
Article 40. If any country or region adopts discriminatory prohibition, restriction or other similar measures against the People's Republic of China in terms of investment, the People's Republic of China may take corresponding measures against the country or region according to the actual situation.
Article 41. If the state has other regulations on the management of foreign investors investing in banking, securities, insurance and other financial industries within the territory of China, or investing in securities markets, foreign exchange markets and other financial markets, such regulations shall prevail[...]'" (Foreign Investment Law of the People's Republic of China of 15 March 2019, as amended)
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"Article 4 Foreign investors or the relevant parties in China (hereinafter collectively referred to as the "parties") shall proactively report any foreign investment within the following scope to the Office of the Working Mechanism before making the investment:	 	　
(1) Investment in the arms industry, an ancillary to the arms industry, or any other field related to national defense security and investment in an area surrounding a military installation or an arms industry facility.	 	
(2) Investment in important agricultural products, important energy and resources, critical equipment manufacturing, important infrastructure, important transportation services, important cultural products and services, important information technology and Internet products and services, important financial services, key technology, or any other important field related to national security, resulting in the foreign investor's acquisition of actual control of the enterprise invested in. 
For the purposes of subparagraph (2) of the preceding paragraph, "acquisition of actual control of the enterprise invested in" shall include the following circumstances:
(1) The foreign investor holds not less than 50% of the equities of the enterprise.	 	
(2) The foreign investor holds less than 50% of the equities of the enterprise, but has voting rights that have a material effect on the resolutions of the board of directors or the members' or shareholders' meeting.	 	
(3) The foreign investor is otherwise caused to be able to have a material effect on the business decision-making, personnel, finance, and technology, among others, of the enterprise.	 	
The Office of the Working Mechanism shall have the power to require the parties to report any foreign investment within the scope specified in the first paragraph of this article (hereinafter referred to as the "reporting scope").[...]" (Foreign Investment Security Review Measures, Order No. 37 of 2020 of of the Ministry of Commerce of the National Development and Reform Commission [google translation])
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"Article 2. This Law applies to data processing activities and their security supervision within the territory of the People's Republic of China.
Where data processing activities are carried out outside the territory of the People's Republic of China and harm the national security, public interests, or legitimate rights and interests of citizens and organizations of the People's Republic of China, legal responsibility shall be investigated according to law.
Article 3. The term "data" as mentioned in this Law refers to any electronic or other records of information.
Data processing, including data collection, storage, use, processing, transmission, provision, disclosure, etc.
Data security refers to taking necessary measures to ensure that data is in a state of effective protection and legal use, as well as the ability to ensure a continuous security state.
[...]
Article 24. The state establishes a data security review system to conduct national security reviews of data processing activities that affect or may affect national security.
The security review decision made in accordance with the law is final.
[...]
Article 26. Where any country or region adopts discriminatory prohibitions, restrictions, or other similar measures against the People's Republic of China in terms of investment and trade related to data and data development and utilization technologies, the People's Republic of China may, according to the actual situation, The country or region takes reciprocal measures.
[...]
Article 31　The "Network Security Law of the People's Republic of China" applies to the outbound security management of important data collected and generated by key information infrastructure operators operating within the territory of the People's Republic of China; other data processors in the People's Republic of China The security management measures for the exit of important data collected and generated during domestic operations shall be formulated by the national network information department in conjunction with relevant departments of the State Council.[...]" (Data Security Law of the People's Republic of China, 10 June 2021 [google translation])
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"Work Measures for Foreign Transfer of Intellectual Property Rights (for Trial Implementation)
In order to implement the overall national security concept, improve the national security system, safeguard national security and major public interests, and regulate the order of the transfer of intellectual property rights abroad, these measures are formulated in accordance with relevant laws and regulations on national security, foreign trade, and intellectual property rights.
1. Scope of review
(1) If the transfer of intellectual property rights such as patent rights, exclusive rights to integrated circuit layout designs, computer software copyrights, and new plant variety rights stipulated in these Measures is involved in activities such as technology export, foreign investors' mergers and acquisitions of domestic enterprises, etc., it is necessary to comply with these regulations. approach to review. The intellectual property rights include their application rights. [..]" (Notice of the General Office of the State Council on Printing and Distributing the "Working Measures for External Transfer of Intellectual Property Rights (Trial), State Banfa [2018] No. 19 of 18 March 2018 [google translation])
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"Article 1
These implementation rules are formulated in accordance with the provisions of the Foreign-Invested Enterprise Law of the People's Republic of China.
Article 2
Foreign-funded enterprises shall be governed and protected by Chinese laws. Foreign-funded enterprises engaging in business activities in China must abide by Chinese laws and regulations and must not harm China's social and public interests.
[...]
Article 5 
If an application for the establishment of a foreign-invested enterprise falls under any of the following circumstances, it will not be approved:
(1) It harms China's sovereignty or social and public interests;
(2) It endangers China's national security;
(3) It violates Chinese laws and regulations ;
(4) Does not meet the requirements of China's national economic development;
(5) May cause environmental pollution.
[...]
Article 7
An application for the establishment of a foreign-invested enterprise shall be reviewed and approved by the Ministry of Foreign Trade and Economic Cooperation of the People's Republic of China (hereinafter referred to as the Ministry of Foreign Trade and Economic Cooperation), and an approval certificate will be issued.
If the application for establishing a foreign-invested enterprise falls under the following circumstances, the State Council authorizes the people's governments of provinces, autonomous regions, municipalities directly under the Central Government, cities under separate state planning, and special economic zones to review and approve the application and issue an approval certificate:
(1) The total investment is within the investment approval authority stipulated by the State Council;
(2) It does not require the state to allocate raw materials and does not affect the national comprehensive balance of energy, transportation, foreign trade export quotas, etc. [...]" (Implementation Rules of the Foreign-Invested Enterprise Law of the People's Republic of China, 12 December 1990, last amended 19 February 2019, Articles 1, 2, 5, and 7 [google translation])
Foreign Investment Law of the People's Republic of China of 15 March 2019, as amended
Foreign Investment Security Review Measures, Order No. 37 of 2020 of of the Ministry of Commerce of the National Development and Reform Commission [google translation]
Data Security Law of the People's Republic of China, 10 June 2021 [google translation]
Notice of the General Office of the State Council on Printing and Distributing the "Working Measures for External Transfer of Intellectual Property Rights (Trial), State Banfa [2018] No. 19 of 18 March 2018 [google translation]
Implementation Rules of the Foreign-Invested Enterprise Law of the People's Republic of China, 12 December 1990, last amended 19 February 2019 [google translation]
[<a href="http://www.gov.cn/xinwen/2019-03/20/content_5375360.htm">Law</a>],[<a href="http://www.gov.cn/zhengce/zhengceku/2020-12/19/content_5571291.htm">Order</a>],[<a href="http://www.npc.gov.cn/npc/c30834/202106/7c9af12f51334a73b56d7938f99a788a.shtml">Law</a>],[<a href="http://www.gov.cn/zhengce/content/2018-03/29/content_5278276.htm">Notice</a>],[<a href="https://www.gov.cn/gongbao/content/2014/content_2692699.htm">Reg</a>],[<a href="https://cms-lawnow.com/en/ealerts/2018/04/new-restrictions-on-the-outbound-transfer-of-intellectual-property-rights">Other</a>]