Reform Of The US Foreign Direct Investment National Security Review System In The Digital Economy And China’s Response

On August 13,2018,US President Trump signed the "Foreign Investment Risk Assessment Modernization Act",which substantially revised the current national security review system for foreign investment in the United States.This reform mainly expanded the scope of national security review for the digital economy and real estate.The authority of the review institution has been enhanced,and the review procedures have been strengthened,resulting in not only increased difficulty for foreign investors to invest in the United States,but also increased investment costs and risks.In this reform,the digital economy is the core reform point.Based on the impact of the current digital economy on the global value chain development trend,it is gradually changing the international investment strategy model of multinational enterprises.With a new investment model led by the digital economy,the Trump administration,driven by investment protectionism,reformed the US national security review mechanism for foreign capital to achieve mandatory technical isolation for emerging countries,focusing on regulating China ’s technology and economic development to maintain US economic advantage and international status.This article is divided into five parts,which are the overview of the U.S.foreign investment national security review system,the content and characteristics of the U.S.foreign investment national security review system reform in the digital economy,the U.S.foreign investment national security review system reform motivation in the digital economy,The impact and status of the reform of the national security review system for foreign investment in the field of digital economy and China’s response and recommendations for the national security review in the field of digital economy.The first part elaborates the basic concepts of foreign investment and its relationship with the national security review system,and then analyzes the digital economy background in recent years in which developed countries led by the United States have reformed the national security review system.In this context,the Trump administration targeted the United States.The security review system has undergone large-scale reforms with the digital economy as the core point,and from the perspective of the legislative background,clarified the process of the United States gradually establishing and improving the US national security review system for foreign mergers and acquisitions at different historical stages;The second part analyzes the focus of the large-scale reform of the national security review system in the United States,and analyzes the scope of the review in the United States.This review covers all control rights transactions and non-controls such as critical infrastructure,key technologies,and personal data related to the digital economy.Investment transactions;adding “particular attention to the country” and the digital economy to the “national security” review considerations;adding a mandatory declaration system in the digital economy to the review process,limiting judicial review authority,improving information sharing systems,and extending review Time limit,etc.;and compared with the relevant systems of the European Union,Germany and other countries,the US reform has the characteristics of the scope of the review covering specific industries,clarifying China as the focus of the review,and using the review process to expand the review authority;The third part analyzes the general motivation of the Trump administration’s current large-scale reform of the national security review system focusing on the digital economy.It is to maintain US national security,such as strengthening data protection and reforming the internal structure of investment review agencies.The motivation is based on the Trump administration’s continued investment protectionism that has always been in the United States,refusing technology to circulate outwards,and implementing mandatory technical isolation for some countries,especially China,to ensure the international status of the US economy and technological development;The fourth part analyzes that the United States,as a major international investment inflow and outflow country,the reform of the national security review system for foreign investment has a reverse effect on international asset flows,international investment rules and the international investment environment,which has a greater impact;and As one of the important driving factors for this reform in the United States,China is subject to a politically biased national security review in the United States,which has led to a rapid increase in the cost of Chinese companies investing in the United States.This article selects Chinese companies to invest in the United States in the digital field.Analyze two typical cases subject to national security review,and analyze Chinese companies’ political prejudice and key regulations under the current national security review system in the United States;Part V introduces China,as a key regulatory country in the US national security review,Chinese investors continue to encounter bottlenecks in investing in the United States,especially in the field of the digital economy,which has led to restrictions on China ’s foreign investment flow,and at the same time in many fields such as trade and finance It also has adverse effects.In order to protect the core rights and interests of Chinese companies investing in the United States,this article systematically puts forward countermeasures and suggestions for responding to the US national security review from both the Chinese company and government levels,and suggests that we can learn from some US national security review systems based on China’s specific national conditions Adhere to the principle of investment liberalization to promote the further development of China’s investment market.