Assessing Security Risks Posed by State-Owned Enterprises in the Context of International Investment Agreements

This article shall draw heavily on the practice and procedures of the Committee on Foreign Investment in the United States (CFIUS), which is the US government committee charged with reviewing the national security implications of transactions that might result in control of a US business by a foreign person or entity. While the CFIUS process has been criticized for lack of transparency, CFIUS has explained at some length its general methodology and the factors it has taken into account. It therefore provides a good example of how at least one major State has sought to grapple with the security risks that might be posed by foreign investment, in general, and investment by SOEs, in particular.