Research On EU Foreign Investment Security Review System

With the development of globalization,capital is widely circulated around the world.While foreign investment is driving economic growth,it also poses a threat to the national security of all countries.The foreign investment security review system has also become a topic of widespread concern in the international investment field in recent years.Countries around the world have begun to establish or improve foreign investment security review systems to strengthen the supervision of foreign investment in response to the impact of capital globalization.As a regional economic organization between countries,the European Union has always adhered to the principle of free capital flow and implemented a loose and open regulatory policy for foreign investment.However,with the influx of large amounts of foreign capital,especially the large-scale acquisition of European core technologies and enterprises in key fields by Chinese companies,it has triggered the EU's concerns about industrial competitive advantages and safety and public order.At the EU level,there has been a long-term lack of a foreign investment security review system and the existing regulatory system cannot effectively solve the threat posed by foreign investment.The EU also realizes the need to establish a foreign investment security review system to strengthen foreign investment supervision and conform to the legislative trend in the international investment field..On September 13,2017,under the promotion of EU member states,the European Commission issued a draft of the “Regulations on the Establishment of a Framework for the Review of Foreign Direct Investment in Europe”(hereinafter referred to as the “EU Foreign Investment Review Regulations”)at the EU level.The parliament approved and signed the review regulations to establish an EU foreign investment security review system that "mainly focuses on the security review of member states and supplements the review by the European Commission".The regulations have officially entered into force in April 2019 and will be fully implemented on October 11,2020.As a result,the EU fills the legal loopholes in the EU's unified level of foreign investment security review mechanism,builds a cooperation mechanism with EU characteristics to optimize supervision and review capabilities,and protect its own EU's overall interests while also meeting the needs of the EU's overall economic strategic deployment.The current foreign investment security review system established by the European Union has taken effect and has been implemented.As the latest legislative measure of the European Union,it not only improves its own foreign investment supervision legislation,but also affects the Chinese government and enterprises as the main importer of foreign investment in the European Union.Adversely affected.Although the overall scale of foreign investment in China is still rising,the proportion and growth rate of investment in Europe have both declined significantly.While the investment field of Chinese companies is restricted,they will also face stricter scrutiny,and transaction costs and risks will rise sharply.In view of the impact of the EU's foreign investment security review system,the Chinese government and enterprises should take targeted measures against the background of the completion of the China-EU Comprehensive Investment Agreement negotiations.Specifically,the national level should not only insist on improving the foreign investment security review system and coordinate the reciprocity of China-EU investment rules,but also actively promote the signing and implementation of investment agreements to improve the China-EU investment environment and restrictions on foreign investment access.Faced with the risks posed by EU foreign investment security,Chinese companies should make full use of the rescue mechanism of its framework to safeguard their legal rights and interests,and at the same time establish a risk prevention mechanism for corporate foreign mergers and acquisitions to reduce transaction risks and increase the success rate of foreign investment and mergers and acquisitions.