Research On The Countermeasures To The New Trends Of U.S.National Security Review Of Foreign Investment

With the continuous development of economic globalization,there are increasing uncertainties affecting the stablization of the world economy.Under the backdrop of such ever-changing environment,more and more countries are promoting investment openness while paying attention to the national factors of foreign investment.For the foreign investment that may affect national security and involve sensitive subjects,objects,industries,technology and other key elements,they will be subj ect to security review.There have been stricter controls and more institutional barriers on foreign investment.In recent years,the United States has continuously improved its foreign investment national security review laws and its national security system barrier.In 2018 and 2019,the United States issued Foreign Investment Risk Review Modernization Act(FIRRMA)and the "FIRRMA Pilot Program".The latest system has intensified review efforts,while giving the Committee on Foreign Investment in the United States(CFIUS)more comprehensive review powers.From entities to procedures,from the broadening of the review scope to the addition of review powers,from the optimization of review procedures to the extension of review periods,and from improvements of internal mechanisms to the establishment of information exchange and coordination mechanism,the FIRRMA has carried out a comprehensive reform of the national security review mechanism.In addition,the reform of the FIRRMA also exhibits the characteristics of investment protectionism.The United States tightened the national security review system of foreign investment,and focused on key technologies,critical infrastructure,personal information protection,and new types of cyber security among other factors.It shows that the United States is undertaking a more cautious and strict control of foreign investment to weaken the negative impact of foreign investment on national security.It is worth noting that FIRRMA has newly added the key concepts of "special attention countries" and "China Investment Report".Foreign investment security reviews have shown a politicized trend,while China has become the special focus of US security reviews.From 2017 to 2019,the number of investment transactions from China reviewed by CFIUS accounted for 20%of the total review cases.ranking first every year,which greatly exceeded the reasonable number of other countries.Such discriminatory tendencies have not only increased the difficulty for Chinese companies to invest in the United States,but also brought challenges to China-US investment relations.In August 2020.the U.S.President accused TikTok of posing national security risk and proclaimed to ban TikTok businesses in the U.S.This heated event further reflected the changes in the focus of the U.S.foreign investment security review reform and its special attention to China.This demonstrates the investment protectionism presented under the FIRRMA and the deep concern of the United States for government factors in foreign transactions.Regarding this issue,an in-depth study of the contents of the FIRRMA will help us better grasp the new trends of foreign investment security review in the United States,and help the Chinese government and companies fully understand how the current security review system will affect Chinese companies’ M&A investments.In addition,it is helpful in proposing the appropriate and effective countermeasures from the macro level and the micro level.thereby reducing the investment risks and safeguarding the legitimate rights and interests of Chinese companies in their trading activities in the United States.This article will particularly focus on the highlights of the FIRRMA reform,and explore the legal responses to the new trends of the U.S.National Security Review of Foreign Investment.Specifically,this article will be divided into four parts.The first part focuses on a systematic introduction of the legal system and institutional operations of the U.S.N Foreign Investment Review,and on the analysis of the balanced features of its institutional operations.In the second part,this article will analyze the new trends of the U.S.National Security Review of Foreign Investment,especially the expansion of CFIUS’s review authority,scope,procedures and the mitigation measures among other critical legislative measures.In addition,centering on the TikTok incident,the second part will discuss about the new trends and reform of the U.S.National Security Review as well as the special attention on China reflected in the incident.Moreover,the author will explore the challenges brought by the new trends to Chinese companies investing in the U.S.In the third part,the author will provide strategic opinions on how the Chinese government should deal with the U.S.foreign investment security review system,from both external and internal perspectives.Finally,in the fourth part,from the corporate level,the author will propose strategies for Chinese companies in terms of legal risk alleviation and investment dispute settlement,and explore how companies should adopt effective strategies to respond to CFIUS security reviews at all stages of investment.This is beneficial for Chinese companies to understand the rules,track trends,and readjust themselves,with the aim to help Chinese investors to tactically adjust their investment strategies and timing,to reduce investment risks caused by national security reviews,and to effectively protect their legitimate rights and interests.