Comparative Research In National Security Review Mechanism Of Russia And India Under The Framework Of “The Belt And Road Initiative”

The concept of “The Belt and Road Initiative” was from a proposal by Chinese President Xi Jinping in September 2013 during a visit to Central Asia and Southeast Asia of the construction of “Silk Road Economic Belt" and "maritime Silk Road in twenty-first Century ". The proposal has aroused great attention. 65 countries are in the “The Belt and Road Initiative” strategy which covering Asia, Europe, Africa and other places. The strategy covers a wide range of places and has an enormous impact with the construction to promote world peace and development and to benefit the people of the world. “The Belt and Road Initiative” is mainly to invest in the construction of infrastructure, further investment in each country along the road which are connected into a line and a Economic Zone. The strategy is not only about investment in each country along, but also about China’s domestic enterprises to take a good move abroad and also about ways to deal with the aftermath of the financial crisis. “The Belt and Road Initiative” is also a good way for China to improve its leadership, strengthen the position in the world and make the world economic and political pattern to re shuffle.National security review mechanism still doesn’t have a complete unified definition no matter at home or abroad. But based on the legislation system of the United States and other developed countries, it mainly refers to national security review of a foreign M & A transaction which exist or may exist threat that may damage the national security. National security review usually take restriction measures of suspension, ban, changing content on transactions or with agreed conditions to regulate of the damage to the national security from foreign capital mergers and acquisitions. From the broad sense of national security review, national security review can be a mechanism in which the host country is designed to safeguard the national security of foreign mergers and acquisitions by censorship which including the system of entry of foreign capital, anti monopoly system of foreign mergers and acquisitions and so on. From the narrow sense, national security review refers to the specialized censorship mechanism which is set up only for national security involved foreign mergers and acquisitions. If eventually other system is not sufficient to eliminate involved national security issues, the national security review is the last resort remedy. Other laws and regulations of anti-monopoly and other relevant areas together constitutes the legal system of government regulation of foreign capital M & A.From the aspect of China’s overseas investment to the countries in “The Belt and Road Initiative”, this article mainly does comparative research in national security review mechanism of Russia and India under the framework of “The Belt and Road Initiative”. The national security review mechanism has a close relationship with overseas investment risk. From this point of view, this research can help Chinese investors to control and asses the legal risk in overseas investment. From the research, the author reached the conclusion that the Russia’s national security review mechanism is Special legislated, strategic industrial national security review with double layer supervision. India’s national security review mechanism is Mixed legislated with no clear legal provisions of supervision, and with national security review covered in Foreign capital industry access policy with Single layer supervision.From the comparison of Russia, India’s national security review mechanism, the author get the suggestions for China’s overseas investment of “The Belt and Road Initiative” and for Foreign Investment Law(Draft Amendment) of China. First, unify the national security review content in bilateral / regional investment agreements to reduce the risk from national security review contradictions, to broaden more space for future investment between the countries. Second, establishment of overseas investment insurance system. Third, exhaustion of the host country’s judicial relief system, such as in Russia, investors can claim to the Russian Federal Supreme Court. Fourth, rational use of international arbitration remedies, such as Russia and China are governed by the Washington Convention, and application can be submitted to ICSID. Fifth, rational use of the host country’s national security review features for China’s investment favor, such as be prudent in strategic industries in Russia and in sensitive sectors in India. Sixth, rational use of new situation between the countries, namely the rational use of the international situation, such as Russia is now actively introduce foreign capital, and restrictions on strategic industry is in a relax, Chinese investors can rationally use this point. For our national security review, first, to distinguish between greenfield investment and foreign mergers and acquisitions, because the new investment will bring many benefits to the host country, such as more jobs and increased GDP. Second, a reasonable setting of national security review of the financial sector. Third, It is too vague for our country to set the review bodies in the Foreign Investment Law(Draft Amendment), the division of labor is not obvious and is easy to produce the buck. Fourth, there are neutral hierarchy process defects in China’s national security review. Fifth, reduce the participation of other political institutions in China’s national security review.