Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 90

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 90
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-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 Ministry of Commerce (“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 “Anti-Monopoly Bureau
of the State Administration for Market Regulation”) shall be notified in advance of any concentration of undertaking if certain
thresholds are triggered. In addition, the security review rules issued by 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 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 of China
(the “Foreign Investment Law”), which came into effect on January 1, 2020, reiterates that China will establish a security
review system for foreign investments. On December 19, 2020, the National Development and Reform Commission (the “NDRC”)
and MOFCOM jointly issued the Measures for the Security Review of Foreign Investments (the “New FISR Measures”), which was
made according to the National Security Law and the Foreign Investment Law and became effective on January 18, 2021. The New FISR Measures
further expand the scope of national security review on foreign investment compared to the existing rules, while leaving substantial
room for interpretation and speculation.

The
M&A Rules have also introduced aspects of economic and substantive analysis of the target business and the acquirer and the terms
of the transaction by MOFCOM and the other governing agencies through submissions of an appraisal