Study On The Latest Reform Of U.S.National Security Review System On Foreign Investment

After nearly half a century of development,the United States has established an integrated national security review system for foreign investment,which mainly includes three aspects: the subject of review,review standards and review procedures.The Committee on foreign Investment in the United States(CFIUS)exercises review authority based on these contents to assess and deal with the threat of foreign investment to the United States national security.The Foreign Investment Risk Review Modernization Act 2018(FIRRMA),is another legislative reform of the US foreign investment security review system following the 2007 Foreign Investment and National Security Act(FINSA).The reform focuses on "modernization" and updates CFIUS ‘' jurisdiction,review process,action authority and resource allocation to ensure that CFIUS has sufficient capacity to address national security issues arising from foreign investment in the new national security landscape.FIRRMA expands CFIUS 's jurisdiction by incorporating certain non-control investments in specific U.S.businesses and specific real estate transactions into “covered transactions”,expands the scope of U.S.national security to include technology,data and network security by adding national security assessment factors,improves the CFIUS review process by introducing simplified and mandatory declarations to make a procedural diversion of transactions with different national security risks,enhances CFIUS 'ability to flexibly address national security issues by granting CFIUS the right to suspend transactions and the right to determine and oversee mitigation measures,and improves CFIUS review efficiency by optimizing the allocation of CFIUS resources.The reform of the US foreign investment security review system by FIRRMA fundamentally stems from the need to address legal lags and insufficient CFIUS capabilities,but it is also induced by external factors that the pattern of Chinese investment has dramatically changed.Although there is a general trend of strengthening foreign security review,it also provides foreign investors with certain convenience and predictability in submitting transactions for review.For Chinese companies investing in the United States,the new act will continue CFIUS 's previous trend of strict review on investment from China,but on the whole,it does not constitute a serious constraint.Chinese investors do not need to blindly panic and give up eating for fear of choking.The Chinese government should provide more guidance and create a favorable environment for Chinese enterprises to invest in the U.S.And Chinese investors should take various measures on the basis of fully understanding the content and impact of the new act and regulations.