The New Development Of The U.S. Foreign-funded National Security Review System And Its Response

In recent years,the number of cases accepted by the Committee on Foreign Investment in the United States(CFIUS)has been increasing and the complexity has been continuously improved.In order to promote the modernization of the CFIUS review system and to more effectively defend the national security of foreign investment,the United States passed the Foreign Investment Risk Review Modernization act of 2018 on August 13,2018(hereinafter referred to as FIRRMA).The FIRRMA Act expands the scope of US foreign investment security review mainly from the following aspects: real estate transactions,other investment transactions that do not constitute control,changes in the rights of foreign investors,and evasion of legally applicable transactions.It will take the transactions that not constitute control but involves critical technologies,critical infrastructure and the sensitive personal information into the scope of review,defining the core concepts of critical infrastructure and critical technologies,and clarifying the scope of foreign security review.On the basis of continuing the previous review factors,new review factors has been added such as country of special concern,network security and other review factors.At the same time,the FIRRMA Act has improved the review process and added a declaration approach,which can reduce the reporting cost of the counter party,and can divert the flow of cases according to its difficulty,thus can improve the efficiency of CFIUS.On this basis,the mandatory declaration system is stipulated,which effectively reduces the national security risks,cases that may have national security concerns are regulated through the mandatory declaration system.Conducive to improve the efficiency of CFIUS.The relevant systems for mitigation measures have been improved,and comprehensive supervision has been carried out on the implementation of mitigation agreements before,during and after the transaction.In addition,the new information sharing system which authorize CFIUS to receive case acceptance fee,CFIUS's right to suspend transaction and extension of review time limit are all conducive to alleviating CFIUS's handling pressure and enhancing the transparency and predictability of foreign investment security review system.To promote CFIUS's fair and efficient foreign security review.Based on the research on the modified content of FIRRMA,this paper analyzes the adverse effects of changes in the security review system of foreign investment in the United States on Chinese companies' investment in the United States,and analyzes the countermeasures that can be taken by two the Chinese companies and the government.For enterprises,it is mainly to grasp the legislative dynamics and take full advantage of the system to reduce their trading risks.For the government,on the one hand,it provides some analysis guidelines for enterprises,on the other hand,it can provide references and insights to perfect China's foreign investment security review legal system from three aspects: review content,review standards and review procedures,thus to keep a good balance between national security and trade freedom.