Research On The Reform Of Eu Foreign Investment Security Review System And China’s Response

As an institutional tool for sovereign states or regions to regulate foreign investment and safeguard security interests,foreign capital security review is a regulator to balance economic development and national security.In recent years,as global economic growth has slowed and protectionism has surged,more and more countries have chosen to tighten security reviews of foreign investment.In the past,the EU has been pursuing a relatively loose and open foreign investment policy,but in order to conform to the trend of The Times and protect the interests of local enterprises,the EU has also begun to reform the foreign investment security review system,issued the EU Foreign Investment Review Regulations,and established the foreign investment security review framework at the alliance level.This means that Chinese investors in Europe will face stricter scrutiny,transaction costs and legal risks will increase sharply,and their development in Europe will be greatly affected.Therefore,it is necessary to study the security review system of foreign investment in the European Union,analyze its main contents and influences,and put forward concrete countermeasures which can be applied to Chinese enterprises to invest in Europe.In recent years,the main development of the EU foreign investment security review system is the introduction of the EU Foreign Investment Review Regulation,which marks the initial establishment of the EU foreign investment review framework dominated by member states and supplemented by the EU.On this basis,the EU and its member states have introduced a number of policies and documents,which have gradually enriched this framework and constitute new reform contents of the EU foreign investment security review system.The main content can be summarized into four forms,namely,the expanding scope and fields of review,the convergence of the review concerns of member states,the emphasis on preventing investment by state-owned enterprises and the emphasis on cooperation in foreign investment review.The EU is a major trading partner of China.The reform trend of the EU to tighten the security review system for foreign investment will naturally bring some challenges to China,which we need to deal with.In the short term,the reform of EU foreign investment policy will reduce the application space of Chinese enterprises,especially state-owned enterprises,to slow down and detour investment in Europe.In the long run,the pan-politicization of EU national security will increase the uncertainty of Chinese enterprises’ investment in Europe,and the restriction of technology mergers and acquisitions will delay the transformation and upgrading of Chinese industries.Finally,on the basis of the foregoing analysis,this article proposes our countermeasures to the reform of the European Union foreign investment security review system,including invoking the existing rules and precedents to defend and restrict,reasonable use of law to seek relief,and building the risk prevention mechanism for Chinese enterprises’ overseas mergers and acquisitions,expanding foreign investment market access.