CCTV: China's ban on Manus mergers and acquisitions prohibits non-compliant practices of companies "going overseas for a quick exit" as well as security risks associated with opening up

On April 27th, the highly anticipated Manus acquisition case came to a conclusion. The Office of the Mechanism for Security Review of Foreign Investment in China (National Development and Reform Commission) lawfully and in accordance with the law made a decision to prohibit foreign investment in the Manus project, requiring the parties involved to rescind the acquisition transaction. So, what signals does the prohibition of the Manus acquisition send, and what is being prohibited? First, it prohibits companies from engaging in the non-compliant practice of “bathing” overseas. Second, it prohibits security risks in the process of opening up. Expanding high-level opening-up and creating a new situation of win-win cooperation has already been incorporated into China’s 14th Five-Year Plan. Lawful regulation is a necessary measure for orderly opening-up, and encouraging foreign investment in China is not contradictory. Development and security must maintain a dynamic balance and complement each other. The more open we are, the more we must emphasize security, clarify security boundaries, and only then can compliant foreign capital be reassured, strengthening long-term confidence. This is precisely an important embodiment of high-level expansion of opening-up. (CCTV News)