Undermining Liberal International Order? The Balancing Act Between Attracting Foreign Direct Investments and Protecting National Security Interests in the US and the UK

This chapter studies the US’s and UK’s approaches to foreign direct investment screening in the light of increased global geopolitical rivalry. The chapter analyses the development of screening mechanisms in these countries by using the concepts of securitization and weaponized interdependence. Both these countries claim to be champions of the free market, but at the same time they are currently increasingly considering and limiting the open global economy with a view towards protecting national security. They are furthermore viewed as the key actors of the Anglo-Saxon axis and as the strongest advocates and defenders of the liberal international order which is threatened by the actions of revisionist states that seek to undermine it, China and Russia being the key antagonists. Based on this, the analysis argues that in the US and the UK the ‘liberal dilemma’ is especially pertinent as the balance between promoting an open global economy and defending the national interest may undermine the liberal international order if it tips to much in one direction. Furthermore, it shows how the US sets the standard for the UK, which has gradually followed suit as the US has tightened its regime and demanded the same of the UK.