M&As face security scrutiny

时间：2007-06-25 06:16:32

（单词翻译:单击）

Beijing, June 25 - Mandatory1 national security checks on foreign companies' acquisition of domestic players have been included to the draft anti-monopoly law submitted yesterday to the top legislature for a second reading.

 

"Foreign mergers3 and acquisitions (M&As) of domestic companies or foreign capital invested in domestic companies in other forms should be examined if the cases are related to national security," said the draft submitted to the 28th session of the Standing4 Committee of the National People's Congress (NPC).

 

There is already a national-security check framework in place for foreign M&As, but it has been included in draft legislation for the first time.

 

According to a regulation jointly5 issued by six government agencies late last year, foreign investors6 have to apply for approvals from the Ministry7 of Commerce when their purchases of domestic companies affect national economic security, are in key sectors8 or lead to the transfer of operating rights of famous domestic brands.

 

The legislative9 move reflects the government's efforts at clarifying the legal framework for foreign M&As, said Meng Jianbing, an expert with Seafront Law Office in Beijing, adding that lawmakers are learning from other countries such as the United States on how to protect national security.

 

The requirement was added to the long-awaited anti-monopoly law against the backdrop of a fast-rising number of foreign M&As as well as foreign companies acquiring major State-owned enterprises or companies with famous brands.

 

One case which has drawn10 widespread attention is US private equity11 firm Carlyle Group's attempted takeover of Xugong Construction Machinery12, which did not pass regulatory hurdles13 following fears that China is selling strategic companies to foreign investors.

 

According to official statistics, foreign M&As accounted for 5 percent of all forms of foreign direct investment annually14 up to 2004 but increased dramatically to 11 percent in 2004 and nearly 20 percent in 2005.

 

Zhang Yansheng, director of the International Economic Research Institute affiliated15 to the National Development and Reform Commission, said it is crucial that foreign purchases of domestic firms go through security as well as anti-monopoly checks.

 

But "the situation needs to be spelt out in more detail. For example, what kind of merger2 cases are related to national security"?

 

The draft anti-monopoly law, which aims to provide for fair competition, was submitted for first review in June 2006.

 
分享到：


点击收听单词发音收听单词发音  

1 mandatory BjTyz     
adj.命令的；强制的；义务的；n.受托者
参考例句：
  • It's mandatory to pay taxes.缴税是义务性的。
  • There is no mandatory paid annual leave in the U.S.美国没有强制带薪年假。
2 merger vCJxG     
n.企业合并，并吞
参考例句：
  • Acceptance of the offer is the first step to a merger.对这项提议的赞同是合并的第一步。
  • Shareholders will be voting on the merger of the companies.股东们将投票表决公司合并问题。
3 mergers b4ab62fffa9919cbf1e93fcad6d3150c     
n.（两个公司的）合并( merger的名词复数 )
参考例句：
  • Mergers fall into three categories: horizontal, vertical, and conglomerate. 合并分为以下三种：横向合并，纵向合并和混合合并。 来自辞典例句
  • Many recent mergers are concentrated within specific industries, particularly in retailing, airlines and communications. 现代许多合并企业集中进行某些特定业务，在零售业、民航和通讯业中更是如此。 来自英汉非文学 - 政府文件
4 standing 2hCzgo     
n.持续，地位；adj.永久的，不动的，直立的，不流动的
参考例句：
  • After the earthquake only a few houses were left standing.地震过后只有几幢房屋还立着。
  • They're standing out against any change in the law.他们坚决反对对法律做任何修改。
5 jointly jp9zvS     
ad.联合地，共同地
参考例句：
  • Tenants are jointly and severally liable for payment of the rent. 租金由承租人共同且分别承担。
  • She owns the house jointly with her husband. 她和丈夫共同拥有这所房子。
6 investors dffc64354445b947454450e472276b99     
n.投资者，出资者( investor的名词复数 )
参考例句：
  • a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
  • a cash bonanza for investors 投资者的赚钱机会
7 ministry kD5x2     
n.(政府的)部；牧师
参考例句：
  • They sent a deputation to the ministry to complain.他们派了一个代表团到部里投诉。
  • We probed the Air Ministry statements.我们调查了空军部的记录。
8 sectors 218ffb34fa5fb6bc1691e90cd45ad627     
n.部门( sector的名词复数 )；领域；防御地区；扇形
参考例句：
  • Berlin was divided into four sectors after the war. 战后柏林分成了4 个区。 来自《简明英汉词典》
  • Industry and agriculture are the two important sectors of the national economy. 工业和农业是国民经济的两个重要部门。 来自《现代汉英综合大词典》
9 legislative K9hzG     
n.立法机构，立法权；adj.立法的，有立法权的
参考例句：
  • Congress is the legislative branch of the U.S. government.国会是美国政府的立法部门。
  • Today's hearing was just the first step in the legislative process.今天的听证会只是展开立法程序的第一步。
10 drawn MuXzIi     
v.拖，拉，拔出；adj.憔悴的，紧张的
参考例句：
  • All the characters in the story are drawn from life.故事中的所有人物都取材于生活。
  • Her gaze was drawn irresistibly to the scene outside.她的目光禁不住被外面的风景所吸引。
11 equity ji8zp     
n.公正，公平，（无固定利息的）股票
参考例句：
  • They shared the work of the house with equity.他们公平地分担家务。
  • To capture his equity,Murphy must either sell or refinance.要获得资产净值，墨菲必须出售或者重新融资。
12 machinery CAdxb     
n.(总称)机械，机器；机构
参考例句：
  • Has the machinery been put up ready for the broadcast?广播器材安装完毕了吗？
  • Machinery ought to be well maintained all the time.机器应该随时注意维护。
13 hurdles ef026c612e29da4e5ffe480a8f65b720     
n.障碍( hurdle的名词复数 )；跳栏；（供人或马跳跃的）栏架；跨栏赛
参考例句：
  • In starting a new company, many hurdles must be crossed. 刚开办一个公司时，必须克服许多障碍。 来自《简明英汉词典》
  • There are several hurdles to be got over in this project. 在这项工程中有一些困难要克服。 来自辞典例句
14 annually VzYzNO     
adv.一年一次，每年
参考例句：
  • Many migratory birds visit this lake annually.许多候鸟每年到这个湖上作短期逗留。
  • They celebrate their wedding anniversary annually.他们每年庆祝一番结婚纪念日。
15 affiliated 78057fb733c9c93ffbdc5f0ed15ef458     
adj. 附属的, 有关连的
参考例句：
  • The hospital is affiliated with the local university. 这家医院附属于当地大学。
  • All affiliated members can vote. 所有隶属成员都有投票权。

©2005-2010英文阅读网