The legislative history of China's Security Review System is summarized in chronological order as follows:

中国安审制度的历史发展脉络按时间顺序总结如下：

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The Security Review Measures consist of 23 articles and provide a framework for the enforcement authority, the review scope, and the application mechanism of the security review, etc.

《安审办法》共二十三条，对安全审查的主管部门、审查范围、申报机制等问题作出了框架式的规定。

Below are the key contents of the Security Review Measures:

《安审办法》的主要内容总结如下：

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The Security Review Measures do not specify what are subject to the security review, which leaves room for the enforcement authority to decide.  Referring to both the Security Review System for M&A of domestic enterprises by foreign investors and Security Review System for foreign investments in some free trade zones, what are subject to the security review may include but not limited to:

《安审办法》对安全审查的具体内容没有作出详细规定，这为主管部门留下解释空间。参考外资并购境内企业安全审查制度，及在自贸区试点实施的外资安全审查措施，安全审查的内容可能包括但不限于：

(1) The impact of foreign investments on national defense, including domestic products’ production capacity, domestic service provision capacity, and relevant equipment and facilities required by national defense;

外商投资对国防安全，包括对国防需要的国内产品生产能力、国内服务提供能力和有关设备设施的影响；

(2) The impact of foreign investments on the stable operation of the national economy;

外商投资对国家经济稳定运行的影响；

(3) The impact of foreign investments on the order of basic social life;

外商投资对社会基本生活秩序的影响；

(4) The impact of foreign investments on national cultural security and public morality;

外商投资对国家文化安全、公共道德的影响；

(5) The impact of foreign investments on national network security; and

外商投资对国家网络安全的影响；及

(6) The impact of foreign investments on research and development capability of key technologies related to national security.

外商投资对涉及国家安全关键技术研发能力的影响。

Note: Items (1) - (3) and (6) above are subject to the security review on foreign M&A of domestic enterprises in the Notice on M&A Security Review; Items (4) and (5) (i.e., the impact of foreign investments on national cultural security, public morality, and network security) are the new requirements in the Security Review Measures in PFTZ compared with the Notice on M&A Security Review.

注：上述第（1）—（3）项及第（6）项系《并购安审通知》对外资并购境内企业的安全审查内容；第（4）项及第（5）项（即审查外商投资对国家文化安全、公共道德、网络安全的影响）系《自贸区安审办法》在《并购安审通知》基础上对外商投资审查的新增内容。

In addition to the enforcement authority, review scope, and the application mechanism described above, the Security Review Measures also have detailed provisions on the foreign investors’ application procedure, and the enforcement authority’s security review execution procedure.  Depending on specific situations of different foreign investment projects, the security review may include phases such as consultation, application and acceptance, general review, and special review, etc.

除前述的主管部门、审查范围及申报机制外，《安审办法》还就外国投资者的申报及主管机关执行安全审查的流程作出了详细的规定。根据不同外商投资项目的具体情况，安全审查可能包括申报前咨询、申报与受理、一般审查、特殊审查等阶段。

The schedule below summarizes each step and the respective time frame in the security review procedure:

安全审查流程中所涉及的步骤、审查期限总结如下：

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Notes: * During the period of the security review, the time for the parties to provide additional materials shall not be included in the time frame；If the parties amend the investment plan, the time frame shall be restarted from the date when the Working Mechanism Office receives the amended investment plan.

注：* 安全审查期间，当事人补充提供材料的时间不计入审查期限；当事人修改投资方案的，审查期限自工作机制办公室收到修改后的投资方案之日起重新计算。

** The security review decision made following the law is a final decision and is not subject to remedies, such as administrative reconsideration or administrative litigation.

** 依法作出的安全审查决定为最终决定，行政复议、行政诉讼等救济手段不适用于安全审查决定。

As can be seen from the above schedule, the number of projects that need general review and special review will decrease step by step. The system is designed to reduce the burden on foreign investors as much as possible.

由上表可见，安审制度将分层递进，进入一般审查和特别审查的项目梯次减少，尽可能避免增加外国投资者的负担。

As mentioned above, while providing the framework on the security review, the Security Review Measures remain silent on certain issues.  For example, there is no black-and-white rule on whether some special investment models, such as the VIE structure, are subject to the Security Review Measures.  We hope that the enforcement authority will provide more explanations of related issues during the implementations and enforcements.

如前文所述，《安审办法》在对安全审查作出框架性规定的同时，仍对部分问题作出留白处理。例如，VIE架构等特殊投资形式是否适用于《安审办法》。我们相信，主管机关会在执法过程中对相关问题作出澄清，或作出更为细化的规定。

The Security Review Measures limit the review scope within the fields related to national defense industry and the important fields related to national security.  Therefore, we understand that the direct impacts on most of the foreign investors in China are relatively small.  However, foreign investors should still pay attention to the security review that may be required in the investment projects, which should be an important part of due diligence for many foreign-invested projects in China.  We hereby provide some suggestions for foreign investors:

由于《安审办法》将审查范围限定在了国防安全领域及关系国家安全的重要领域，我们理解，其对于一般外国投资者在中国投资的直接影响可能比较有限。但是，外国投资者仍应充分重视在中国投资活动中可能涉及的安全审查问题，这应成为外商投资项目尽职调查的重要组成部分。我们建议外国投资者：

1. Investigate and analyze a specific project’s risk of security review before making any decision, and communicate with the enforcement authority when necessary; and

在作出投资决策前，对具体项目的安全审查风险进行充分论证，必要时与主管机关积极沟通；

2. Consider the impact of security review on the arrangement for a specific project, e.g., adding the completion of security review as a condition precedent in the transaction documents; and

考虑安全审查对具体项目安排的影响，例如将完成安全审查作为交割的先决条件；及

3. Monitor the developments in the implementation of the Security Review Measures, including any detailed rules and procedures, and any cases.

持续关注《安审办法》的实施情况，包括相关的新规和流程，以及通过安全审查的案例。