The Foreign Investment and National Security Act of 2007: An Assessment of Its Impact on Sovereign Wealth Funds and State-Owned Enterprises

Research Handbook on Sovereign Wealth Funds and International Investment Law (Edward Elgar, 2015)

Ohio State Public Law Working Paper No. 231

39 Pages Posted: 30 Jan 2014 Last revised: 1 Dec 2015

See all articles by Paul Rose

Paul Rose

Ohio State University - Moritz College of Law; Bocconi University - BAFFI Center on International Markets, Money, and Regulation; Tufts University - The Fletcher School of Law and Diplomacy; FundaciĆ³n Instituto de Empresa, S.L. - IE Business School

Date Written: January 29, 2014

Abstract

In 2007, the U.S. Congress passed the Foreign Investment in the United States Act (FINSA), the most recent in a series of calibrations to a basic regulatory framework that is now nearly 40 years old. FINSA has particularly significant effects on investment by sovereign wealth funds (SWFs) and state-owned enterprises (SOEs). Indeed, FINSA is properly understood as a response to SWF and SOE activity, and is designed to provide a framework in which U.S. regulators can weigh the particular risks presented with investment by state-controlled entities. Although in general FINSA has performed ably and as intended in its first five years of implementation, balancing the risks associated with SOE and SWF investment in a competitively neutral way has historically been a challenge, and now seems to be even more challenging after the passage of FINSA.

Keywords: CFIUS, FINSA, FDI, sovereign wealth funds, state-owned enterprises

JEL Classification: K2, K20, K22, K23, K33

Suggested Citation

Rose, Paul, The Foreign Investment and National Security Act of 2007: An Assessment of Its Impact on Sovereign Wealth Funds and State-Owned Enterprises (January 29, 2014). Research Handbook on Sovereign Wealth Funds and International Investment Law (Edward Elgar, 2015); Ohio State Public Law Working Paper No. 231. Available at SSRN: https://ssrn.com/abstract=2387562 or http://dx.doi.org/10.2139/ssrn.2387562

Paul Rose (Contact Author)

Ohio State University - Moritz College of Law ( email )

55 West 12th Avenue
Columbus, OH 43210
United States

Bocconi University - BAFFI Center on International Markets, Money, and Regulation ( email )

Milano, 20136
Italy

Tufts University - The Fletcher School of Law and Diplomacy ( email )

Medford, MA 02155
United States

FundaciĆ³n Instituto de Empresa, S.L. - IE Business School ( email )

Calle Maria de Molina 12, Bajo
Madrid, Madrid 28006
Spain

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