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.

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.

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.

Americans have long been ambivalent toward foreign direct investment in the United States. Foreign multinational corporations may be a source of capital, technology, and jobs. But what are the implications for US workers, firms, communities, and consumers as the United States remains the most popular destination for foreign multinational investment? Theodore H. Moran and Lindsay Oldenski find that foreign multinational firms that invest in the United States are, alongside US-headquartered American multinationals, the most productive and highest-paying segment of the US economy. These firms conduct more research and development, provide more value added to US domestic inputs, and export more goods and services than other firms in the US economy. The superior technology and management techniques they employ spill over horizontally and vertically to improve the performance of local firms and workers. As the United States wants not only to expand employment but also create well-paying jobs that reverse the falling earnings that many US workers and middle class families have suffered in recent decades, it is more important than ever to enhance the United States as a destination for multinational investors

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.