The Comparative Study On The Substantial Standards Of National Security Review Of Foreign Merger And Acquisition

The markets and industries of China have been opened increasingly to the world sinceChina entered the WTO in2001. Under this background, China is reducing the economic gapgradually with the western countries coupled with its potential crisis on the national security.The introduction of foreign capital can serve a host country’s economic development;however, it may intrude and control the national security of a host country, which canmanipulate a host country’s material policies and decisions in the related industries.Compared with some developed countries like United States and Canada which haveestablished their cross-border M&A review on national security, China has still a long way tobuild up its characteristic cross-border M&A review on national security despite Chinainitiates its provisions of cross-border M&A review on national security as the Stipulation onthe Cross-Border M&A of Foreign Investors Over the Cross-border Corporations.The cross-border M&A review on national security includes the reviewed subject, object,substantial standard and procedure. Among them, the substantial standard, which representsthe level of harm to national security incurred by cross-border M&A, is the core ofcross-border M&A review on national security. In light of the importance of the substantialstandard on the cross-border M&A review on national security, the author analyzes thedefects and deficiencies on China’s cross-border M&A review on national security bycomparing with those of developed countries such as Unite States, France, Canada, Japan andGermany, and puts forward some suggestions to establish and improve the cross-border M&Areview on national security of China.The full text is divided into six parts as follows:The introduction mainly presents the source and significance of topic of the thesis; thechapter I is the foundation of the thesis which mentions the concept and relation between thecross-border M&A and national security, and points out the positive and negative impacts ofthe cross-border M&A on the different types of national security (emphasis on the negativeone). The chapter II lists the substantial standards of cross-border M&A review on nationalsecurity as those of Unite States, France, Canada, Japan and Germany, and studies theprovisions on the substantial standards of those five countries. The chapter III furthers theconclusion of the current substantial standards of the five developed countries above and comes up with emphasizes of each standard. The chapter IV subdivides the elements ofsubstantial standards and sums up the four most major elements. The chapter V compares thesubstantial standards of cross-border M&A review on national security between China and thefive developed countries, and puts forwards some suggestions on the improvement of thesubstantial standards upon the defects of China’s existing rules.