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China's burgeoning domestic economy remains a popular mergers & acquisitions (M&A) market for international investors, despite its lengthy approval process, tough antitrust laws and strict rules for overseas investments.

Overseas investors planning to make an acquisition must meet China's criteria for acceptable foreign investment by demonstrating a commitment to share high-value technologies and skills, and clear China's potentially lengthy and complex approval process.

The main regulator that approves deals in non-sensitive industries is the Ministry of Foreign Trade and Commerce (MOFCOM).

M&A in China has also become subject to tougher scrutiny following the introduction in 2008 of a new antitrust regime. M&A transactions may be referred to China's Anti-Monopoly Bureau should the proposed deal exceed merger control thresholds.

Creating a joint venture may help to prevent M&A transactions being hit by China's limits on foreign ownership of businesses in tightly-controlled sectors such as banking, life insurance, securities and fund management.

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