Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 94

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1
Chunk 94
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 we may acquire in the PRC relative to other special purpose acquisition companies that are
not subject to such restrictions and may make it more difficult and costly for us to consummate a business combination with a target business
operating in the PRC relative to such other companies. As a result, we may not be able to consummate a business combination with a favored
target company.

49

The M&A Rules and certain other PRC regulations establish complex
procedures for certain acquisitions of Chinese companies by foreign investors, which could make it more difficult for us to pursue a business
combination with a China-based business.

The M&A Rules adopted by six PRC regulatory agencies in 2006 and
amended in 2009, and some other regulations and rules concerning mergers and acquisitions established additional procedures and requirements
that could make merger and acquisition activities by foreign investors more time-consuming and complex, including requirements in some
instances that the MOFCOM be notified in advance of any change-of-control transaction in which a foreign investor takes control of a PRC
domestic enterprise. Moreover, the Anti-Monopoly Law requires that the anti-monopoly enforcement agency of the State Council (currently
the State Anti-Monopoly Bureau) shall be notified in advance of any concentration of undertaking if certain thresholds are triggered.
In addition, the security review rules issued by the MOFCOM that became effective in September 2011 specify that mergers and acquisitions
by foreign investors that raise “national defense and security” concerns and mergers and acquisitions through which foreign
investors may acquire de facto control over domestic enterprises that raise “national security” concerns are subject to strict
review by the MOFCOM, and the rules prohibit any activities attempting to bypass a security review, including by structuring the transaction
through a proxy or contractual control arrangement. On July 1, 2015, the National Security Law of China took effect, which provided that
China would establish rules and mechanisms to conduct national security review of foreign investments in China that may impact national
security. On March 15, 2019, the PRC National People’s Congress approved the Foreign Investment Law, which came into effect on January
1, 2020, and reiterates that China will establish a security review system for foreign investments. On December 19, 2020, the NDRC and
the MOFCOM jointly issued the Measures for the Security Review of Foreign Investments, or the New FISR Measures, which were made according
to the National