The Investigation Of The National Security Review System For Foreign Mergers And Acquisitions

The combination of high and new technology advancement, terrorism rampancy, global energy shortage as the emergence of newly industrialized nations has sharpened the worry among the counties about the foreign mergers and acquisitions (M&A) in the word. Every government is trying to find out a way to keep the balance between continuing its open investment policy and national security review. However, the interaction of political consideration, economic factors, legislative skills and its practicability involved there has made the efforts difficult.There are six chapters in this article. The forward part introduces the reason of selecting this topic and the mentality of researching. Chapter one outlines the concept, the background and the influence of M&A, and point out the problems need to solve in this article. Chapter two analyzes the national security review system for foreign mergers and acquisitions (M&A) in other countries, and introduces the representative review mechanism in the U.S. Based on the case of CNOOC, it analyzes the five standards in the national security review system of the U.S. Chapter three elaborates the present situations and disadvantages of the system in China. Chapter four solves the first problem. According to the "going abroad" strategy for Chinese enterprises, some countermeasures and suggestions are made on how to reduce legal risks caused by national security review towards foreign M&A and how to complete cross-border M&A smoothly. Chapter five solves the second problem. Based on the actual situations, it puts forward the suggestions about establishing the national security review system for M&A in China.