A Research On The System Of National Security Review Of Foreign Investment In China

With the deepening of the liberalization of international investment, FDI has played an increasingly important role in the countries. However, concerns have been raised about the problems of using foreign capital by increasing FDI, which mainly refers that FDI may exert an adverse effect on the critical technologies and sensitive areas to squeeze the national industry. It can be a threat to national security and national interests. Opening to the outside world which is a certain extent, and national security are not the opposite concept, so they are complementary each other and none is dispensable. Therefore, countries all over the world needs to improve the system of the national security review of foreign investment to defense these national security concerns. This is subject that all countries need to further study. Although General Office of the State Council have issued regulations regarding the Circular of the Tentative Measures for the National Security Review of Foreign Investment in Pilot Free Trade Zones, the current national security review system of foreign investment in China is still not enough to remedy the national security concerns. The paper attempts to start with the basic issue construction of the national security review system of foreign investment in pilot free trade zones, interprets the connotation of national security and the development status and the legal basis of the national security review system for foreign investment, and analyzes the necessity and the influence of the national security review system in pilot free trade zones, compares and evaluates the main national legislation designs of the national security review system of foreign investment in outside world. Through analyzing the Tentative Measures for the National Security Review of Foreign Investment in Pilot Free Trade Zones, we can find the features and disadvantages of China’s current national security review. The innovation on national security review system of foreign investment sets up the free trade zones as pilot sites, in which we seeks to hold on to the balance of opening to the outside world and national fundamental interests, in order to put forward the corresponding countermeasures and suggestions to perfect the national security review system of foreign investment in China. The paper consists of four chapters.Chapter one as an introduction to the thesis, which mainly expounds the research purpose, significance, methods, domestic and international research status and the main innovation points and so on.The second chapter mainly explains the legislative designs on the national security review system for foreign investment in the major outside countries, analyzes the advantages and disadvantages, and evaluates their systems. Comparing with the current national security review system in the major outside countries, we can find enlightenment significance to the construction of the system in ourselves.The third chapter discusses the basic content on the current national security review system of foreign investment, respectively explains the connotation and extension of national security, national economic security and foreign investment, and analysis the development situation, contents and rationality in improving the system of the foreign-funded national security review system in pilot free trade zones. First of all, we present the comprehensive introduction on the national security review system for foreign investment, which mainly analyzes the features and disadvantages, and the value significance of the system in pilot free trade zones.The four chapter mainly puts the national security review system of foreign investment into the free trade zones in the first try, finds a key link in the process of perfecting the system, and finally puts forward to improve the foreign investment suggestions on national security review system in China.Therefore, we should be a joint review of the agency as a breakthrough for the breach and perfect of the system. To carry out national security review system is not a simple problem, which needs the coordination of various departments of the state, completes the review process as a basis for behavior, and especially pays attention to the matter and the later improvement of the regulatory scrutiny system.The Tentative Measures for the National Security Review of Foreign Investment in Pilot Free Trade Zones, which reveals a change of the value of the national supervision system in our country. The change reflects a big reversal of the national supervision of thinking, from active attack to the defensive. Defensive regulatory model must have a good national security review system, which can be used as a Safety Valve to protect the interests of the state. National security can be traced back to a country’s sovereignty, which embodies protecting the fundamental interests of the state and the national order of the underlying meaning. The construction of the national security review system is consistent with the contemporary international investment liberalization trend, which is international law basis and plays a formidable utility in the international economic and trade activities.The construction of the national security review system is a personalized interpretation process, and redistributes the risks of the host country and investor. The setting of the system significantly increased the risks of investors, so investors often have to improve the investment strategy and investment costs to deal with the risks faced by investment. We should timely adjust the review process, so as to find the most reasonable legal mechanism on practice, and achieve the balance of investment openness and national security.