Foreign Investment Strategic Assets And National Security

At the time of a paradigm change Foreign Investment, Strategic Assets and National Security is a timely analysis of the changing attitude towards foreign investment in major economies, namely the United States of America, the People's Republic of China, Australia, Canada, and Germany, France and the United Kingdom as representatives of the European Union.Foreign investment has grown steadily for decades, and the de-regulation of international trade and investment was a widely accepted trend, particularly in developed countries. Increasingly, however, this development is encountered by opposition. Globalisation and socio-economic effects of mergers and acquisitions of domestic firms by foreign investors receive less support from the general public. Concerns about national security, protection of new technologies and competitiveness are raised. This leads national and regional legislators to develop new mechanisms to control foreign investments, particularly in light of national security. The widely adopted and traditional ex post approach linked to investment treaties is now enhanced by an increased focus on the phase prior to the actual implementation of the investment.This legal development and the new screening systems are captured in this book and it is explained how the present paradigm change is affecting the legal rules in practice. It is a must read for everyone working in the field.

This report makes recommendations for reforming the Committee on Foreign Investment in the United States (CFIUS) and examines how the administration and Congress can reassure foreign investors of U.S. openness and address growing anxieties in other countries.

This report assesses recent international developments as the leaders from a number of nations work to reach a consensus on an informal set of best practices regarding national restrictions on foreign investment for national security purposes. This report also provides one possible approach for assessing the costs and benefits involved in using national policies to direct or to restrict foreign direct investment for national security reasons.

Examines foreign direct investment (FDI) in the United States, the national security concerns associated with this investment, and treatment of these concerns under US policy. This book asks whether the Committee on Foreign Investments in the United States (CFIUS) process can be improved and answers in the affirmative.Does foreign ownership of American businesses pose a threat to the United States (like the abortive attempt by CNOOC, a Chinese company, to purchase Unocal during the summer of 2005)? This important new book examines foreign direct investment (FDI) in the United States, the national security concerns associated with this investment, and treatment of these concerns under US policy. It asks whether the Committee on Foreign Investments in the United States (CFIUS) process can be improved and answers in the affirmative. The book starts by looking at the review process for foreign takeovers of US firms (including a historical review), looks at the economic and political impact on the United States of foreign direct investment, takes a detailed look at issues relating to FDI posed by the rise of China as an economic and geopolitical power and finally suggests some changes to the Exon-Florio process.

This book offers a dynamic introduction to the new developments on national security review of foreign direct investment (FDI) from the perspectives of both domestic law and international investment law. COVID-19 and the Russian invasion of Ukraine have intensified FDI screening to an unprecedented scale, yet its purposes, scope and potential impact remain ambiguous and controversial. The book first attests the legitimacy of FDI screening by using the theory of National Security Constitution. Part I explicates the national security, public order and public health exceptions clauses in international investment law and the novel EU Regulation on FDI screening. Part II provides an in-depth analysis of FDI screening in China, France, Germany, Italy, the Netherlands, Poland and the UK, which have either witnessed momentous changes in domestic law recently or have adopted new laws to cope with the growing security concerns. The book illustrates how States and the EU are using legal instruments to tackle exigent and emerging challenges and the complexity of national security emanated from foreign investment, in the context of evolving disruptive digital technologies and the structural change of the global economy. The volume will be of great value to a wide range of audiences including academics in investment and trade law, legal practitioners, in-house counsels, policymakers, business professionals and law and business students at the graduate level.

In recent years, China, the US, and the EU and its Member States have either promulgated new national laws and regulations or drastically revised existing ones to exert more rigorous government control over inward foreign direct investment (FDI). Such government control pertains to the establishment of an ex-ante review regime of FDI in the host state in sectors that are considered as ‘sensitive’ or ‘strategic’, with an aim to mitigate the security-related implications. This book conducts a systematic and up-to-date comparative study of the national security review regimes of China, the US, and the EU, using Germany as an exampling Member State. It answers a central research question of how domestic law should be formulated to adequately protect national security of the host state whilst posing minimum negative impacts to the free flow of cross-border investment. In addition to analyzing the latest development of the national security review regimes in aforementioned jurisdictions and identifying their commonalities and disparities, this book establishes a normative framework regarding the design of a national security review regime in general and proposes specific legislative recommendations to further clarify the law. This book will be of interest to scholars in the field of international and comparative investment law, investors who seek better compliance programs in the host state, and policymakers who aim for high-quality regulation on foreign investment.

The United States is the largest foreign direct investor in the world and also the largest recipient of foreign direct investment. This dual role means that globalization, or the spread of economic activity by firms across national borders, has become a prominent feature of the U.S. economy and that through direct investment the U.S. economy has become highly enmeshed with the broader global economy. This also means that the United States has important economic, political, and social interests at stake in the development of international policies regarding direct investment. With some exceptions for national security, the United States has established domestic policies that treat foreign investors no less favorably than U.S. firms. This report assesses recent international developments as the leaders from a number of nations work to reach a consensus on an informal set of best practices regarding national restrictions on foreign investment for national security purposes. This report also provides one possible approach for assessing the costs and benefits involved in using national policies to direct or to restrict foreign direct investment for national security reasons.

The United States is the largest foreign direct investor in the world and also the largest recipient of foreign direct investment. This dual role means that globalization, or the spread of economic activity by firms across national borders, has become a prominent feature of the U.S. economy and that through direct investment the U.S. economy has become highly enmeshed with the broader global economy. This also means that the United States has important economic, political, and social interests at stake in the development of international policies regarding direct investment. With some exceptions for national security, the United States has established domestic policies that treat foreign investors no less favorably than U.S. firms. This report assesses recent international developments as the leaders from a number of nations work to reach a consensus on an informal set of best practices regarding national restrictions on foreign investment for national security purposes. This report also provides one possible approach for assessing the costs and benefits involved in using national policies to direct or to restrict foreign direct investment for national security reasons. Within the United States, there is no consensus yet among Members of Congress or between the Congress and the Administration over a working set of parameters that establishes a functional definition of the national economic security implications of foreign direct investment. In part, this issue reflects differing assessments of the economic impact of foreign investment on the U.S. economy and differing political and philosophical convictions among Members and between the Congress and the Administration.