The Influence Of National Treatment For Foreign Investment To The Country's Economic Security And Countermeasures

With the liberalization of international investment, Nationaltreatment will be a basic system in foreign capital domain and will beacknowledged and accepted by more and more countries. Theestablishment of national treatment bases on the ideas of equality andfreedom, it's helpful to optimize the international investment environmentand also is beneficial to the communal development and wealthy ofinternational society. However, As a result of the various countries'national condition difference, particularly the huge disparity of economicpotentiality between the developed countries and the developing countries,simultaneously the new international investment order has not established,foreign capital national treatment system will create the certain degreeimpact for economic security of the host country in particular thedeveloping nations. And these impacts mainly manifest that infringing thestate's core economical domain, challenging the state's economysovereignty, depriving the state's economy benefit and pushing aside thenational related industry.At present, International society is warmly to implement the foreigncapital national treatment system to promote the liberalization of interna-tional investment. However, international society pay little attention tothe state economy security. Although many countries' foreign capital lawshave stipulations to safeguards the country economic security, but they are so different that be disadvantageous to the liberalization ofinternational investment. How to processes relation between the foreigncapital national treatment system and the state economy security?Theoretically, we should profit from the trade relief system of WTO. Byconsummating the national treatment system, to entrust the mechanismwith the sovereign state to maintain the country economic security, tosolve the bottleneck which international multilateral investmentagreements form, and to make the international investment system moreconsummate.Our country have attained encouraging achievement in the domainof foreign capital and have promoted development of the state economy,but still have some flaw, for example there are the ultra national treatmentand the state economy security system is unperfect. The flaw have madesome negative effect to the state economy security. We should completeseveral work to safeguard the state economy security when we implementthe foreign capital national treatment system: Firstly, process the relationscorrectly between the utilization of foreign capital and the maintenance ofstate economy security. Secondly, reasonably exploit the exceptions toforeign capital national treatment. Thirdly, enhance the competitiveability of the national industry. Finally, establish the country riskmanagement and the safe guard mechanism for the introduction foreigncapital.