Is the US Ready for FDI from China?
- Studies in International Investment series
Edited by Karl P. Sauvant
Chapter 3: The US Regulatory and Institutional Framework for FDI
3. The US regulatory and institutional framework for FDI David N. Fagan* INTRODUCTION In May 2007, President George W. Bush issued a statement on United States policy toward foreign investment, termed by the administration as a statement on “open economies.” The statement was spurred by a desire to affirm to the world that the United States remained open to foreign direct investment (FDI) – a task made essential by the highly politicized reaction of the US Congress in 2006 to the proposed investment in US port operations by Dubai Ports World. The statement also anticipated the more balanced action taken by Congress later in 2007 to adopt reasonable reforms to the primary legal mechanism for vetting FDI, the Exon–Florio Amendment to the Defense Production Act. Importantly, though, President Bush’s statement was not centered only on promoting foreign investment. Rather, it sought a balance between maintaining an open environment for investment and preserving important security interests, as follows: A free and open international investment regime is vital for a stable and growing economy, both here at home and throughout the world. The threat of global terrorism and other national security challenges have caused the United States and other countries to focus more intently on the national security dimensions of foreign investment. While my Administration will continue to take every necessary step to protect national security, my Administration recognizes that our prosperity and security are founded on our country’s openness. As both the world’s largest investor and the world’s largest recipient of...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.