The Study Of Regulation Of Establish A Framework For The Screening Of Foreign Direct Investments Into The Union

The EU is an open economy.Foreign direct investment has promoted the economic growth of the EU and its Member States,provided a large number of employment opportunities and brought technological innovation,on the other hand,foreign investors,especially state-owned enterprises,have been paying close attention to sensitive areas,which has aroused the concerns of EU Member States and EU regulatory authorities.As early as in the document "trade for all" in 2015,the EU pointed out that the EU needs to establish a rule-based trade and investment mechanism.There is no unified mechanism in the EU for foreign direct investment,which leads to the opportunity for investors to bypass the review.On May 10,2017,the EU put forward suggestions in the feedback document of "managing globalization" that the EU,especially for investment in sensitive industries,should strictly review to protect the EU’s strategic interests and prevent foreign direct investment from having adverse effects on the EU’s "security and public order".In this context,on March 21,2019,the European Parliament and the Council announced the establishment of a new framework for FDI review on the basis of "security and public order"-regulations on FDI review.The foreign direct investment review regulation is in line with the EU principles of authorization,proportionality,freedom of capital flow and procedural rules.The regulations stipulate that foreign direct investment belongs to the public business policy with exclusive rights of the EU,and it is in line with the authorization principle of the EU to formulate the review framework of foreign direct investment at the EU level;the regulations allow member states to choose to join on their own in terms of effectiveness,and the final decision-making power of the review belongs to Member States in terms of the macro and general review criteria,and the indicative list of the Commission indicates that in order to ensure transparency and certainty,as well as prohibition of prior disclosure,do not bring greater burden on the parties to the information disclosure,which conforms to the principle of proportion of the EU;and the procedures are legal.The FDI reviewing machine’s basis of "security and public order" is an exception to the EU’s freedom of capital flow and does not violate the EU’s fundamental freedom of capital flow.Therefore,the EU foreign direct investment review regulation is legal.The newly established review mechanism of EU is a coordination and cooperation framework with "security and public order" as the core.The regulation aims at the review of foreign direct investment,and the standard of the review is "security and public order".In order to ensure the unity of Member States,it lists the non-exhaustive list of key areas in investment,and gives EU member states the discretion to review foreign direct investment that affects "security and public order";in the aspect of investors,it emphasizes the relationship between investor identity and The identification of nature,especially the vigilance of state-owned assets investors.At the same time,the procedure time and cooperation mechanism among Member States and between Member States and the European Union are specified,and the establishment of contact points,expert groups,delegations,etc.is proposed.Although the review system established by the EU’s foreign direct investment review regulations has established review standards,it also gives member states greater discretion and increases uncertainty;the review regulations require cooperation mechanisms which increases the EU’s review administrative costs;at the same time,according to the review standards,review features and China’s investment in the EU is highly overlapped,covering most of China’s investment in the EU,with strong pertinence.In this case,China should adhere to the open trade policy,actively promote the establishment of international trade rules and systems,clarify the relationship between enterprises and the government,eliminate the distrust of Chinese enterprises,and finally enhance the awareness of law-abiding enterprises,study carefully,and protect their own vital interests in the elusive examination.