Research on the Convergence of Foreign Investment Security Review Legal Systems in Europe and the United States

Abstract

In recent years, the legal system of foreign investment security review in major economies around the world has shown an expanding and evolving trend. The foreign investment security review rules based on domestic law and national sovereignty have continuously eroded the international rule of law and international investment law rules. Phenomena such as the abuse of national security and security exceptions have led to tensions among domestic rule of law, international rule of law, and international customs. In particular, the foreign investment security review legal rules of relevant countries under the banner of national security have challenged the rules or principles such as investment facilitation, fairness and justice, and transparency, thereby affecting the investment rights and interests of the investors’ home countries. Overall, as the foreign investment security review systems of various countries evolve, the problems of domestic laws overriding international law rules, interfering with the rights and interests of other countries, and the security of the global industrial and supply chains with domestic laws have become prominent. A review of the foreign investment security review systems in relevant countries reveals that the legal rules for foreign investment security review in major economies around the world show a development trend of high modification frequency, large discretionary power, extensive rule expansion, strong technological orientation, strict review degree, low transparency, and high ambiguity. It can be foreseen that this trend will gradually show a further tightening momentum along with the changes in international relations and the international economic environment.