Why Did Carlyle Fail to Buy Xugong? - A Case Analysis from National Security Perspective

摘要

The article reviews Carlyle's attempted acquisition of Xugong, explains that the national security concern over the case is due to the business nature of Xugong, the amount of money involved in the case, and a blog article accusing fairness of the transaction price. It also argues that the enactment of the Provisions on the Takeover of Domestic Enterprises by Foreign Investors is an inevitable result of the development of foreign investment regulations in China, not a sudden appearance caused by the case. The article lastly points out that the case is a good lesson for foreign investors doing or planning to do business in China to do as Chinese do. It also suggests that Chinese government improve foreign investment national security review mechanism and the public should have more objective attitude to inbound foreign investment.