An Analysis Of The Reform Of The U.S. Foreign Investment National Security Review System

As the international landscape has changed,the traditional jurisdiction of the Committee on Foreign Investment in the United States,or CFIUS,has become increasingly limited and uncertain.The United States embarked on a new legislative process to modernize the CFIUS process in 2017,and following an iteration of proposals,Congress adopted the Foreign Investment Risk Review Modernization Act of 2018(" FIRRMA ")on August 13,2018.This paper is divided into three parts.The first part analyzes the legislative background of FIRRMA Act from three aspects.First of all,the first section traces the core and review factors of CFIUS review from the beginning of the establishment of the development,and briefly analyzes the traditional CFIUS review system.The second section expounds the promoting effect of external environment on CFIUS reform.The third section analyzes the special concerns on China revealed by FIRRMA Act.In particular,concerns about made in China 2025 have led Congress to pass new legislation to fill the gaps in CFIUS review.The second part emphatically analyzes the reform content of FIRRMA Act and the content system of supporting implementation rules.FIRRMA and the final Implementation Rules significantly expand the jurisdiction of CFIUS physically from transactions that are traditionally "controlled" to related real estate transactions,and transactions that do not constitute "controlled" but involve Critical Technologies,Critical Infrastructure,Sensitive Personal Data(TID).In terms of procedure,FIRRMA Act and its implementation rules set up a new brief reporting procedure called "Declaration",which greatly improves the review efficiency of CFIUS.Meanwhile,for the first time,mandatory reporting procedures were set up,especially for foreign governments with "actual interests".The third part of this paper focuses on the analysis of China's foreign investment national security review system and its existing problems,such as the lack of clear scope of review leading to the lack of transparency of the system,the lack of independence of the review body,the lack of mitigation measures conducive to the conclusion of transactions and other issues.Then,combined with the highlights of FIRRMA's reform,this paper puts forward Suggestions on how to improve China's system,including considering the establishment of major review industry catalogue,and realizing the connection between foreign capital access system and foreign capital national security review system.Define "relevant departments",including fixed personnel allocation;Establish lists of professional advisory volunteers of a social assistance nature.Finally,based on the difficulties and challenges faced by Chinese enterprises investing in the United States after FIRRMA Act came into effect,this paper puts forward some Suggestions for enterprises investing in the United States.The biggest innovation in the writing process of this paper is reflected in the last chapter,that is,a relatively comprehensive summary of the problems existing in China's foreign investment national security review system,and a relatively unique view on the enlightenment of the U.S.foreign investment national security review system to China.