The Ralls implications for the National Security Review

The potential national security effect of foreign acquisitions has been a long standing issue facing the host states worldwide, which holds particular true between those adversary nations, like the United States and China. Such unexpected consequences as plausible protectionism and governance discrimination are detrimental to the global economic recovery. The creation of China's own national security review (NSR) regime complicates further the perceived retaliatory measures. To pierce the veil of the Committee on Foreign Investment in the United States' (CFIUS) process of NSR is conducive to mitigating unnecessary stalemate between the two world economic giants in the scenarios of cross-border investments. 'Ralls' serves as a landmark case for a Chinese company to challenge the US President's and CFIUS's divesture orders. It remains uncertain of the extent to which the CFIUS's future NSR assessment procedures will be reshaped followed by the US executive's setback in the lawsuit. Through maintaining a predictable regulatory landscape, it is crucial to strike a balance between encouraging foreign investment and protecting national security.