Chinese market remains facing challenging situations in the year of 2022. The Covid-19 brought the economic growth rate of China to a historic low point. Other factors, such as global economic recession and inflation, Ukraine- Russia conflicts, and China-US confrontations, also depressed the M&A market of China. According to the statistics released by Wind Information Co., Ltd., as of the third quarter of 2022, there are 6,603 M&A deals in China announced with a total amount of RMB 1,469 billion, which has dropped around 20% compared with the first three quarters of 2021.

中国市场在2022年仍然面临挑战，新型冠状病毒肺炎（简称“新冠肺炎”）使中国经济增长率降至历史低点。其他因素，诸如全球经济衰退和通货膨胀、俄乌冲突以及中美对抗，也抑制了中国并购市场。根据万得信息技术股份有限公司发布的统计数据，截至2022年第三季度，中国公布的并购交易有6,603宗，总金额为14,690亿元人民币，较去年同期下降了约20%。

According to the outbound investment report of Ernst and Young (“EY”), for the first three quarters of 2022, the value of announced outbound M&A deals by Chinese companies is US$23.5 billion, which is down 49% compared with the same period of 2021. Two main factors have caused the drop of the outbound investment: the Covid-19 and geopolitical tensions. The travel restrictions cause difficulties in cross-border due diligence and negotiations, and the geopolitical tensions shadow the outcomes of the potential M&A deals.

根据安永会计师事务所（“安永”）的海外投资报告，2022年前三季度，中国企业宣布的对外并购交易额为235亿美元，较去年同期下降49%。导致对外投资下降有两个主要因素：新冠肺炎和地缘政治紧张局势。旅行限制给跨境尽职调查和谈判带来困难，而地缘政治紧张局势则给潜在并购交易结果带来负面预期。

According to the EY’s report, deals are mainly in the sectors of TMT, advanced manufacturing & mobility, health care and life sciences and mining and metals, while the consumer sector has experienced an 83% drop in terms of deal value. Asia is still the most popular investment destination for Chinese enterprises year to date, while deals involving Chinese buyers in Europe sharply decreased due to the tensions caused by, among other things, Ukraine-Russia confliction and stricter scrutiny by the government of the targets. The oversea M&A continues to slow “with no signs of turning point in sight”.

根据安永的报告，海外投资交易主要集中在TMT、先进制造与运输、医疗与生命科学，以及采矿和金属等行业，而消费品行业的并购交易额则下降了83%。亚洲仍然是中国企业今年以来最受欢迎的投资目的地。然而，由于俄乌冲突造成的紧张局势及收购标的政府的严格审查等因素，中国企业在欧洲参与的交易急剧减少。总体来看，海外并购继续放缓且“没有看到转折点的迹象”。

Overseas M&A deals today initiated by Chinese buyers especially those by the stated-owned enterprises, are facing stricter scrutiny by foreign government. It occurs that certain Chinese buyers have been ordered to sell the target company they have already acquired, even after the closing of the transaction. For example, an offshore subsidiary of a Chinese company listed on the Shanghai Stock Exchange was required in November, 2022 by the British government to sell at least 86% equity interest of Newport Wafer Fab, based on the national security concerns after a retrospective reviewing. To address with such risks, certain Chinese investors are considering teaming up with PE firms or other workable approaches. 

如今由中国买家发起的海外并购交易，尤其是由国有企业发起的并购交易，面临着外国政府更严格的审查。已经出现外国政府要求某些中国买家出售其收购的目标公司的情况，甚至是在交易已经结束后提出此类要求。例如，2022年11月，英国政府经过回溯式审查后，基于国家安全考虑，要求某上交所上市公司的境外子公司剥离其持有的纽波特晶圆厂（Newport Wafer Fab）至少86%股权。为了应对该等政府审批风险，某些中国投资者正在考虑与私募股权投资机构合作或其他可行方法。

Although under the background of the covid-19 pandemic and the potential global economic recession, foreign investors continue to consider China as one favorable investment destination. According to the statistics of Ministry of Commerce of China, it is shown that China's actual use of foreign investment during the first 10 months of 2022 amounted to US$ 168.34 billion, up 17.4% on a year-on-year base.

虽然在新冠肺炎和潜在的全球经济衰退的背景下，外国投资者仍然认为中国是一个较好的投资目的地。根据中国商务部的统计，2022年前10个月，中国实际利用外资达1,683.4亿美元，同比增长17.4%。

According to statics of Renaissance M&A Advisory, during the first six months of 2022, there are 61 announced public M&A deals in the A-share market, with 45 companies in main board, 15 companies in ChiNext board (China’s growth enterprise market), and 1 company in BSE (the Beijing Stock Exchange). Take-overs by a listed company against another listed company remain active. According to an incomplete statistic of the disclosure on the Shanghai and Shenzhen stock exchanges, by November 2022, there have been nearly ten such deals announced.

根据浙江文艺馥欣投资管理有限公司的统计，2022年上半年，A股市场共有61宗上市公司并购交易，其中主板上市公司45家，创业板（中国的成长型企业市场）15家，北京证券交易所1家。“A购A”（即一家上市公司收购另一家上市公司）类上市公司收购仍然活跃。根据上交所和深交所披露信息的不完全统计，截至2022年11月，已经有近10起此类交易公布。

The New Anti-Monopoly Law (2022 Amendment)

新《反垄断法》（2022年修正）

The new Anti-Monopoly Law (2022 Amendment) has been officially implemented on August 1, 2022. In addition, on June 27, 2022, the State Administration for Market Regulation announced the new Provisions of the State Council on Thresholds for Declaration of Concentrations of Undertakings (Revised Draft for Comments), which has not yet entered into force and may be further revised in the subsequent drafts. These two new legislations will have important impacts on the M&A in China, including but not limited to:

新《反垄断法》（2022年修正）已于2022年8月1日正式实施。此外，国家市场监管总局于2022年6月27日就新修订的《国务院关于经营者集中申报标准的规定》（修订草案征求意见稿）公开征求意见，该修订草案目前尚未生效且后续可能进一步修改。这两部新的立法/草案将可能会对中国的并购交易产生重要影响，包括但不限于以下方面：

(1) Article 26 of the new Anti-Monopoly Law (2022 Amendment) adds the following clause: "Where a concentration of undertakings does not meet the threshold for declaration set by the State Council, but there is evidence that the concentration of undertakings has or may have the effect of excluding or limiting competition, the State Council’s anti-monopoly law enforcement authority can require the business operators to declare. Where the business operator fails to make a declaration in accordance with the two preceding paragraphs, the State Council’s anti-monopoly law enforcement authority shall conduct investigation pursuant to the law.” In some M&A deals with special types of target companies, although the target company's turnover is lower than the threshold for declaration, its market share in the relevant market is very high. In such scenario, the M&A transaction parties need to evaluate whether the concentration of undertaking has the effect of excluding or limiting competition, and decide whether a declaration is required.

（1）新《反垄断法》（2022年修正）第26条增加了以下条款：“经营者集中未达到国务院规定的申报标准，但有证据证明该经营者集中具有或者可能具有排除、限制竞争效果的，国务院反垄断执法机构可以要求经营者申报。经营者未依照前两款规定进行申报的，国务院反垄断执法机构应当依法进行调查。”在一些特殊类型目标公司的并购交易中，虽然目标公司的营业额低于需要进行经营者集中申报的标准，但其在相关市场的市场份额可能非常高。在这种情况下，并购交易各方需要评估该等经营者集中是否可能具有排除或限制竞争的效果，并决定是否需要进行经营者集中申报。

(2) Article 58 of the new Anti-Monopoly Law has greatly raised the punishment for failure of declaration. Compared with the monetary fine of up to 500,000 RMB in the old Anti-Monopoly Law, the new Anti-Monopoly Law imposes a monetary fine of not more than 10% of last year’s sales revenue if the concentration of undertakings has an effect of excluding or limiting competition; or a monetary fine of not more than 5,000,000 RMB if the concentration of undertakings does not have an effect of excluding or limiting competition. We believe that more M&A transaction parties will consider the potential risk of failure of declaration and strengthen compliance in this regard.

（2）新《反垄断法》（2022年修正）第58条大幅提高了对未依法进行经营者集中申报行为的处罚力度。在罚金处罚方面，与旧《反垄断法》中最高50万元的罚款相比，新《反垄断法》对具有排除、限制竞争效果的，处上一年度销售额10%以下的罚款；不具有排除、限制竞争效果的，处500万元以下的罚款。我们相信，在未来更多的并购交易中，相关方会考虑到未依法进行经营者集中申报的潜在风险，并加强这方面的合规性。

(3) Thresholds of declaration for concentration of undertakings are hopefully to be raised, which may further reduce the number of M&A deals required to be declared. According to Article 3 of the new Provisions of the State Council on Thresholds for Declaration of Concentrations of Undertakings (Revised Draft for Comments), one of the thresholds that trigger the obligation to declare is raised from the original "consolidated turnover exceeds RMB 10 billion worldwide + turnover of at least two business operators exceeds RMB 400 million in China " to the new one "consolidated turnover exceeds RMB 12 billion worldwide + the turnover of at least two business operators exceeds RMB 800 million in China", and the other threshold is also raised from the original "consolidated turnover exceeds RMB 2 billion in China + turnover of at least two business operators exceeds RMB 400 million in China " to the new one "consolidated turnover exceeds RMB 4 billion in China + turnover of at least two business operators exceeds RMB 800 million in China."

（3）经营者集中申报标准有望提高，进一步减少需要进行经营者集中申报的并购交易数量。根据新的《国务院关于经营者集中申报标准的规定》（修订草案征求意见稿）第3条，触发经营者集中申报义务的标准之一由原来的“参与集中的所有经营者上一会计年度在全球范围内的营业额合计超过100亿元人民币，并且其中至少两个经营者上一会计年度在中国境内的营业额均超过4亿元人民币”提高到新的“参与集中的所有经营者上一会计年度在全球范围内的营业额合计超过120亿元人民币，并且其中至少两个经营者上一会计年度在中国境内的营业额均超过8亿元人民币”；另一个标准也从原来的“参与集中的所有经营者上一会计年度在中国境内的营业额合计超过20亿元人民币，并且其中至少两个经营者上一会计年度在中国境内的营业额均超过4亿元人民币”提高到新的“参与集中的所有经营者上一会计年度在中国境内的营业额合计超过40亿元人民币，并且其中至少两个经营者上一会计年度在中国境内的营业额均超过8亿元人民币。”

The US CHIPS and Science Act 2022

美国2022年《芯片与科学法案》

The CHIPS and Science Act has been enacted by the US Congress and signed into law on August 9, 2022. According to Section 103(b)(5)(D), “During the applicable term of the agreement of a covered entity required under subparagraph (C)(i), the covered entity shall notify the Secretary of any planned significant transactions of the covered entity involving the material expansion of semiconductor manufacturing capacity in the People’s Republic of China or any other foreign country of concern.” This so-called “guardrails provision” will materially restrict the relevant US companies’ M&A transactions in China’s semiconductor manufacturing industry.

美国国会颁布的《芯片与科学法案》已于2022年8月9日签署生效。根据该法案第103(b)(5)(D)条款的规定，“受上述第(C)(i)条款约束的企业，在协议有效期间内，如在中国或其他受关注国家有任何涉及实质性扩大其半导体制造能力的重大交易计划，应当将该等计划告知美国商务部。”前述“护栏条款”将严重限制美国相关企业在中国半导体制造业中的并购交易。

The New Anti-Monopoly Law (2022 Amendment) has greatly increased the punishment for failure of declaration of concentration of undertakings, and the new Provisions of the State Council on Thresholds for Declaration of Concentrations of Undertakings (Revised Draft for Comments) may greatly raise the thresholds of declaration, these two new legislations will have important impacts on the future M&A transactions in China.  At meantime, the US CHIPS and Science Act 2022 will materially restrict the relevant US companies’ future M&A transactions in China’s semiconductor manufacturing industry.

新的《反垄断法》（2022年修正）显著加大了对未依法进行经营者集中申报的处罚力度，而新的《国务院关于经营者集中申报标准的规定》（修订草案征求意见稿）可能会大幅度提高需要进行经营者集中申报的交易的标准，这两部新的立法/草案将可能对未来中国的并购交易产生重要影响。同时，美国2022年《芯片与科学法案》将严重限制美国相关企业未来在中国半导体制造业的并购交易。