The Comparison Of National Security Review On Foreign Investment In China And United States

Along with the globalization of the world economy and the implement of Policy of Reform and Opening-Up, many Chinese enterprises are not satisfied with the domestic market and are seeking opportunity to enter foreign markets. There are several options, for example, starting up a new company in a targeted foreign market or directly investing in foreign companies. No matter which option the company adopts, knowing and abiding with the law in the targeted country is very important. It could be a keystone for Chinese enterprises’ success, but also could be the reason for their losses.In term of foreign investment, since China has opened up its market since 1990 s, it has become an essential market for other foreign investors, which gives credits for the encouraging policies adopted by the Chinese government on taxation and other governmental actions. However, Chinese notice not only the new energy in the market bought by the foreign investment, but also an impulse to Chinese traditional or national industries. Thus, there is a balance between the advantage and disadvantage of foreign investment. It involves the issue whether the foreign investment will hinder the Chinese enterprises. Some issues concern about the Chinese national security.The thesis starts with the Chapter 1, the definition of “foreign investment”, “merger” and “national security” and further analyzes the necessity of establishing national security review. In this chapter, it emphasizes the basic definitions. Chapter 2 and Chapter 3 respectively introduces the current legal system, national review agency, review targets, review standard and review procedures in China and in United States. These two chapters aim to lay proper foundation for the Chapter 4. Chapter 4 compares the national review system in China and United States and takes a deep analysis in the CNOOC v. Unocal case on facts, legal and effects aspects. Chapter 5 is the summary of the thesis.The thesis uses the historical analysis by looking back the historical development of the Chinese and American national security review, the case analysis by going through a case where Chinese enterprise tried to invest in an American company to have a profound understanding of how the US national security review works, and the analysis of summarizing the past relevant documents which support the theoretical foundation of this thesis.