Mergers and acquisitions (M&A) of Chinese enterprises by foreign investors will have to pass three major investigations before receiving central authority approval, according to an official from the Ministry of Commerce (MOC).

Sun Peng, deputy director of the Foreign Investment Department of MOC, made the announcement during the Summit on Transnational Corporations and the Sustainable Development of China in Beijing on Tuesday.

Companies must prove that the M&G is anti-monopoly to ensure fair market competition; that it doesn't endanger national economic security; and that the M&G deals should abide by rules, and the interests of employees and laid-off workers should be guaranteed.

China will continue to introduce foreign capital and encourage foreign investors to get involved in the restructuring of SOEs, said Fu Ziying, assistant to the Minister of Commerce at the summit. He also said China would encourage foreign investment in energy-saving, high-tech, modern service industries, and in particular the service outsourcing industry. Investment in high energy consuming and seriously polluting industries is strictly limited.

By People��s Daily Online