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UPDATE: China mulls changes to foreign investment reviews

China's commerce ministry has proposed changes to how it evaluates foreign investments, requiring a national security review for "strategic" foreign deals involving listed Chinese companies.

Published July 30, the proposed changes expand the scope of foreign investments that are covered by China's current review process.

China also intends to lower the minimum amount of total assets that a foreign investor must own in order to acquire a strategic stake in a listed company to $50 million from $100 million.

The plan also reduces the required assets under management by a foreign investor or the actual controller to at least $300 million from $500 million.

It is also considering to cut the lock-up period for listed A-shares acquired by a foreign investor to one year from three at present.

The draft measures will be open for public consultation until Aug. 29. The new guidelines take effect 30 days after its issuance.

The move comes after U.S. lawmakers agreed on legislation that will bolster national security reviews of foreign investments amid heightened trade tensions with China.