The definition of ‘foreign persons’ under the Biosecurity Law remains the same as under the HGRAC Regulation, which includes any overseas organisations, individuals and any institutions established or actually controlled by such overseas organisations or individuals. In practice, the criteria is not clear in determining whether an entity is controlled by an overseas organisation or individual. For example, it is not clear whether a variable interest entity structure (often used where foreign investment is prohibited or restricted) would be considered as ‘foreign persons’ with respect to HGR protection. Another example would be whether a Chinese entity engaging in research activities based on China’s HGR could have foreign individuals on its research team.
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