Research On National Security Review System Of Foreign Investment In China

The national security review system for foreign investment in China has gradually developed from the embryonic form of the "Three Laws on Foreign Investment" to the establishment of formal confirmation through legislation in 2020.This is closely related to my country’s continuous expansion of opening.The Foreign Investment Law that came into effect in 2020 that extended national treatment to the entire investment stage and give domestic and foreign investors equal opportunities to enter a certain market area.Considering that this pre-access national treatment system.There may be factors affecting national security,and the system aims to eliminate factors that may affect national security,expand the degree of openness.Therefore,China created the law in accordance with the following two principles,one of the content is to treat foreign investors with the same investment conditions in the same way,but different measures may be taken for foreign investors from different countries,because the countries they belong to have different impacts on China’s national security.And another principle is the principle of regulatory balance,that means he foreign investment national security review system is the last review measure to be used,when other systems can eliminate the impact on national security,there is no need to start the foreign investment national security review.In the implementation rules "Foreign Investment Safety Examination Measures",it is stipulated that China’s safety examination agency is the Office of Working Mechanism.In the regulation,some investment areas are listed,which are equivalent to those made by the highest authority and cannot be reviewed by the higher authorities.The review was divided into two phases: a general review and a special review.The state system of foreign investment verification in China is the same as in other countries.However,compared with the complexity and importance of national security the system,the regulations are somewhat unclear: The law stipulates the concept of foreign investment but does not specify who is to be scrutinized.The defined concept of national security was not clear as a standard of review and did not specify other factors that should be considered in the review.The authority of the review agency is not clear.If the review agency adopts a model where review power and decision power are integrated,the review agency needs to be highly effective,and the review agency in China is still noticeably young and it is not sure whether it can do better the review work.And the adoption of this model requires more supervision,but the regulation does not mention the supervision mechanism.The content is incomplete in the design of the review procedure.Refer to the process of establishing a foreign investment national security review system,practical examples,and combine the process and purpose of Chinese legislation.Make the following suggestions: in terms of detailed review content,we will add provisions for foreign investors and domestic enterprises to the review content.The mode of separation between the right of examination and the right of decision is adopted in the power distribution of the examination organs.In terms of the review procedures,the review contents at each review stage and the work responsibilities of the review bodies should be increased;Establish a pre-review consultation process;Increase oversight relief procedures.