A Legal Study On The National Security Review On Chinese State Owned Enterprises Overseas Investment

This dissertation aims to study the legal issues about National Security Review mechanism(NSR)on overseas investment of Chinese State Owned Enterprises(SOE).It focuses on the legal relations between NSR and the nature of SOE,and puts forward some legal advice.After briefly introducing the recent case of investment in British Hinkley Point nuclear power plant project which suffered a NSR,pointing out the object of this study,this dissertation will discuss these legal issues in the following chapters from four aspects.Chapter one describes the characteristics of the NSR,establishing the foundation for the whole dissertation.The first section analyzes the legal concept of national security and its impact on SOE overseas investment.The second section detailed analyses the standards of the American NSR.The third section analyses the special legal requirements for SOE in US and Canada,especially analyses legal conditions of Transaction Controlled by Government.The purpose of NSR is to prevent foreign investors bringing bad influence to host country.The standards of NSR are only main factors affecting national security are stipulated,so as to direct authorities to makedecisions in light of specific circumstances.CFIUS strictly review foreign investment defined as Transaction Controlled by Government,which determined in accordance with these three legal conditions: shares owned by government,government subsidy and foreign investors' governance transparency.Chapter two starts with the legal nature of Chinese nuclear power investors,analyzing the characteristics of Chinese SOE,and the correlation to legal conditions of Transaction Controlled by Government.The first section summarizes the definition of SOE.The second section analyses the linkage between SOE characters with Transaction Controlled by Government.The Chinese nuclear power investors are SOE because of monopolization of nuclear industry.The legal characteristics of SOE meet most of judging standards of Transaction Controlled by Government,making SOE investments likely reviewed by host countries.Chapter three analyses two basic reasons for the circumstance that Chinese SOE frequently encounter NSR from the perspective of Nuclear Power Industry.The first section analyzes the close relationship of energy security to national security.The second section analyzes the relationship of nuclear security to national security.Nuclear power industry closely related to energy security and nuclear security,which will strongly influence national economic development and political stability of host countries.Chapter four puts forward some legal proposals on NSR.The first section puts forward reform proposals for nuclear power investor as SOE.The second section analyzes the current situation of NSR in China's legal system,and puts forward some relevant proposals.The last section analyzes the embodiment of NSR in China's investment treaties,which needs more detailed and reasonable content on NSR,such as raising a “negative list” of industry categories on NSR,requiring legitimacy of means.