China’s National Security Review of Foreign Investment

Chapter 5 is focused on the impact of national security review for cross-border listings of Chinese companies within the broader context of foreign investment regulation in China. By analyzing the law and practices of China and the United States, this chapter finds that the national security review regimes of the two jurisdictions have functional convergences despite some formal divergences caused by diverse political-economy landscapes. Their functional convergences are highlighted by China’s local practices, such as the de facto national security screening in the name of anti-monopoly review. There are many factors affecting China’s national security review regime for foreign investment, including the ongoing (and escalating) US–China competition (or conflict) at the international level and the evolution of state or party capitalism at the domestic level.