Abstract
When the Foreign Investment Law of China was adopted on 15 March 2019, security review was emphasized as an essential layer governing inward foreign investments, which had evolved from national security concerns embedded at market access review for foreign-invested enterprises (FIEs) and projects, security review for mergers and acquisitions. This article studies the evolution of China’s security review in foreign investment and finds that both changing focuses on identifying national security in China’s socialist market economy and the institutional struggle in certain central ministries addressed by the Chinese Communist Party (CCP) have in fact affected the evolution of security review in the Foreign Investment Law (FIL) with Chinese characteristics. Security review, Foreign Investment Law, institutional struggle, Chinese Communist Party, institutional reform, market access review, mergers and acquisitions, M&A security review, leadership
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