A Study On The Legislation Of China's National Security Review System Of Foreign Investment

Foreign investment and national security are two interrelated themes.The entry or control of foreign investment in some specific areas may endanger the national security of the host country,while over consideration of national security and restriction of foreign investment will have a negative impact on the economic development of the host country.As far as China's situation is concerned,the effective operation of foreign investment security review system is needed to achieve the purpose of maintaining national security in practice,as well as create a good investment environment for foreign investors to further absorb Foreign investment.The operation of a system must,first of all,have clear and strong legal basis.China's legislation on foreign investment security review system started late.Although it has been clearly reflected in some legislative documents,it has not yet formed a perfect system,and there are still many areas to be improved,which is difficult to provide a strong theoretical guarantee for the effective operation of the system.For example,there is no complete framework system,no special legislation and the existing legislative rank is relatively low,the definition of key concepts is vague,the scope and content of the review are slightly abstract,the composition of the review subject and the division of power and responsibility is not clear,and the supervision and rescue mechanism is lacking.These problems lead to the weak legal basis and the predictive function of law is difficult to realize,and the scope of discretion in the review is too large,which is not conducive to the expansion of investment opening.In contrast,the United States has adopted a special legislative model in the field of foreign investment security review and has had a long period of legislative and practical experience.The recent implementation of The Foreign Investment Risk Review Modernization Act 2018 is another improvement of the system.Its legislation has formed a complete framework system,and the specific issues involved in the review have also been improved in successive legal amendments.Therefore,it is a choice to understand and analyze the handling methods of similar problems in the U.S.,to provide ideas and experience accumulation for China's legislation,and then to make suggestions for the improvement of China's corresponding legislation.In the current research,the suggestions for the improvement of China's foreign investment security review system are mostly from the macro perspective.Based on the analysis of the current problems in the legislation of China's foreign investment security review system,combined with the legislative treatment of similar problems in the U.S.and the characteristics of China's national conditions,this paper will put forward corresponding legislative suggestions for the deficiencies in the review system of our country from the microcosmic point of view,such as providing legal protection for the implementation of the system through the way of special legislation of the people's Congress,reasonably defining the so-called "national security" and "foreign investment" and other key concepts in the review,clarifying the scope and content of the review,refining the composition of the review subject and the division of labor and cooperation among the internal agencies,establishing an appropriate internal and external supervision mechanism and open relief channels for the investors of the audited transactions.