Comparative Study On Chinese And American National Security Review System For Foreign Mergers And Acquisitions

National security review system for foreign mergers and acquisitions isessential to a country, and for various reasons, China will attract more and moreforeign mergers and acquisitions as time goes by. Therefore, we must attach moreimportance to the security review system, and constantly improve it to complete it.Commerce Department announced the “People’s Republic of China ForeignInvestment Law (exposure draft)” on January19,2015, which involves the relevantcontent. Meanwhile, the security review system of the United States is the world’smost sophisticated and advanced. This paper aims at studying and comparing thesecurity review system of these two countries, in order to discover the strengths ofour own system and improve the deficiencies of it. The author also applied therelevant content in the “exposure draft” to contribute ideas and effort to our securityreview system, thus smoothening the process of Chinese foreign mergers andacquisitions.This paper is formed by four parts. Firstly, it states some basic issues of thesecurity review system, including the identifications of relevant concepts, theanalyses of relevant theories, etc. Secondly, the paper focuses on study of thedevelopment and the demonstration of the integrity of American security reviewsystem, such as the relatively blurred definition of its “national security”, therelatively comprehensive coverage of the reviewing targets and the adaptedexpansions of the reviewing standards, etc. Thirdly, it states the transformations ofChinese security review system, and points out several issues, for example, the papershows that the priority of related laws is low, the standards of review system isundefined, the process is not efficient and etc. Lastly, by comparing the two systemsand incorporating with the newly announced “exposure draft”, the paper providessome suggestions to improve Chinese security review system.Due to the long time span and the comparative content, the paper mainlyapplies the following research methods:historical research and comparative research. The major features of this paper are as follows. First, it researches on fields thatare hardly involved, which the author considers it is worth studying. Second, itdemonstrates the core structures and the key elements of American security reviewsystem by stating the core content and ordering the time sequence. Third, the paperkeeps up with new laws and regulations, analyses the related parts and presents theauthor’s own perspectives.We can draw a conclusion through the studies above. The author believes thatthe security review system of the United States is superior that it can help optimizeour own security review system to some extent. What we should do is to learn theessence from it. Meanwhile, we should also pay attention to Chinese own conditionsand specificities, and contribute our talent and effort to keep the best balance ofattracting foreign investment and protecting our national security.