Foreign Direct Investment Screening for National Security in Asia Pacific: Navigating the Updates
摘要
The years after the global economic crisis in 2009 have witnessed the adoption and revision of foreign direct investment (FDI) screening mechanisms for national security, which peaked in the aftermath of the COVID-19 pandemic. In such context, this chapter conducts a study of the newly introduced or updated regulations on FDI screening for national security reasons in Asia Pacific. This reveals that, although predominantly adopted and implemented by developed countries in Europe, the expanding use of FDI screening on the ground of national security also affects the practice of both developed and developing countries in Asia Pacific. A close examination thereof shows that while FDI screening mechanisms for national security maintain specificities inherent to the adopting countries, the measures implemented by Asia-Pacific countries exhibit similarities and a common development trend. Such revised FDI screening mechanisms, while having their own value and significance, are in danger of becoming a burdensome barrier to FDI and significant administrative burdens for governments, and may further exacerbate the protectionism in international economies in Asia Pacific. As to the way forward, concerted domestic and regional efforts are expected to be taken to carefully deliberate and find a balanced way to strengthen the ability to address potential national security threats posed by FDI while preserving a conducive climate for investment in Asia Pacific.