Comparative Study On National Security Review Of Foreign Investment In U.S.A And China

From1990s, especially after the WTO entry, China has gradually permittingforeign investors to participate in its market and takes a number of measures toincentive foreign investment. Currently, China has become a major recipient offoreign investment worldwide. We also noticed that foreign investment, when pouringinto China market, also hit traditional industries and national brands, which, caused abig discuss with regard to the national security review of foreign investment. InFebruary2011, the General Office of the State Council issued the Circular onEstablishing National Security Review System of Foreign Investment, which indicatesthat China has established its national security review system of foreign investmentofficially.Comparatively, the provisions of the above Circular and other relevant laws andregulations are too broad and thereby cannot defend the national security definitely inpractice. America has long history in legislation of national security review of foreigninvestment, from the Trading with Enemy Act in1917, to the Exon-FlorioAmendment in1988and to the latest Foreign Investment and National Security Act.The relevant regulations merit our reference and study.On the basis of the concept of Foreign Investment and National Security, thisarticle mainly reviews the five waves of merger and acquisition worldwide, and introduces the historical process of American legislation with regard to nationalsecurity review of foreign investment, and classifies the main content thereof. Basedupon the aforesaid analysis, the article makes comment, combing the currentlegislative situation, regarding the national security review of foreign investment inChina. This article is composed of four parts other than the preamble and conclusion.Chapter one is an overview of national security review of foreign investment,and clarifies the relevant conceptions. It especially looks back to the five wages ofmerger and acquisition to show a general picture of foreign investment.The second part introduces the background and process of America legislationregarding national security review of foreign investment. In particular, it discussesand comments the Exon-Florio Amendment.Chapter three presents the latest legislation with reference to the national securityreview in America, namely the Foreign Investment and National Security Act in2007and its implementation rules.The fourth chapter introduces the legislative history of national security reviewof foreign investment in China. By comparing with American system, it makesproposals regarding the national security review system of China.