The UK's National Security and Investment Act 2021 (NSI Act) has officially come into effect, granting the government the power to review foreign investment and changing the UK's foreign investment management system. The stock of bilateral direct investment between China and the UK has reached 47.8 billion US dollars, and the new review mechanism in the UK poses a barrier to Chinese corporate investment. This article analyzes the core provisions and features of the NSI Act, explores the constructivist theoretical reasons for establishing a new review mechanism in the UK, and proposes corresponding strategies.

1、 A Brief Analysis of the UK Foreign Investment Security Review Mechanism

The UK foreign investment security review mechanism is divided into two stages: review based on EA2002 before the NSI Act comes into effect, and review based on the NSI Act after the NSI Act comes into effect. The NSI Act stipulates the conditions for initiating national security reviews, proactive intervention mechanisms, declaration procedures, and remedies. The triggering event is the core of the review, including obtaining control of eligible entities or assets. Eligible entities include the business activities of UK entities and overseas entities in the UK, and eligible assets include land, tangible movable property, etc. Control includes situations such as increasing the proportion of shares and voting rights. The NSI Act specifies the conditions for issuing call notifications and evaluation deadlines. The national security review is presided over by the Minister of State and is divided into mandatory declaration procedures and voluntary declaration procedures. If the review determines that there is a national security risk, the Minister of State may take remedial measures such as temporary orders and final orders.

2、 The main features of the UK's foreign investment security review mechanism

The main feature of the UK's foreign investment security review mechanism is reflected in the implementation of the NSI Act, which enhances the UK's power in foreign investment security review and provides clear guidance, improving the certainty of the review. The mechanism features include: the review is easily triggered because the NSI Act does not explain the concept of national security, but rather judges whether the investment behavior triggers an event, lowering the review threshold; The scope of review is broad, with no restrictions on the economic sector, covering 17 economic fields, including advanced materials, high-end robots, artificial intelligence, and civil nuclear energy, and the review objects include domestic and foreign entities and assets; Multiple dual mechanisms are established, such as the coordination of public interest review and national security review, as well as the division of active and passive review methods; The review criteria are relatively flexible, and the UK government has not clearly defined the concept of national security or review standards, making it difficult to accurately determine whether the transaction will pass; There is a clear tendency towards instrumentalization and politicization. Although the NSI Act has designed an operational framework, the lack of evaluation criteria may lead to mechanisms becoming opaque tools. The politicization of national security concepts and the adjustability in actual reviews make identity and nationality hidden standards. The UK government can set targeted key review areas for different countries.

3、 The root cause of establishing a foreign investment security review mechanism in the UK

The fundamental reason for establishing a foreign investment security review mechanism in the UK lies in its identity change and shift in its understanding of interests. The UK is attempting to redefine its collective identity at the global level, strengthening its international status and global influence through the 'Global UK' strategy. The UK adjusts its role identity with its partners, deepens its special relationship with the United States, appropriately adjusts its distance from the EU, and independently coordinates its relationship with the EU after Brexit. The UK is constructing a new role identity with China, shifting from a partner to a competitor, and controlling Chinese investment in the UK. Constructivist theory emphasizes the special significance of non-material factors such as ideas and culture in international relations, which can be used to explain the changes in the UK's foreign investment security review. The motivation for British behavior comes more from the recognition of the value of objects, and interests are constructed by ideas. The changing identity of the UK determines its understanding of interests, reflected in the cognitive transformation in the field of foreign investment management.

4、 The Impact and Countermeasures of the UK Foreign Investment Security Review Mechanism

The implementation of the UK's foreign investment security review mechanism marks a shift in the UK's attitude towards foreign investment, forming a trend of strengthening foreign investment review with the United States, the European Union, and others. From January 2022 to March 2023, the UK received a large number of declarations, and the Secretary of State frequently exercised his intervention power, issuing final orders for national security reviews on multiple transactions, with a high proportion of cases involving Chinese investors. The impact on China is mainly reflected in the fact that Chinese investment has become an important factor in the operation of the review mechanism, and Chinese enterprises face a more complex investment regulatory environment, as well as forming a foreign investment security review circle with the United States, the European Union, and other countries. The response strategies of the Chinese government and enterprises include continuous interaction with the UK in terms of ideology and norms, providing a "imitation" way to influence the UK's identity recognition, promoting Chinese ideas in global governance, international relations maintenance, and domestic development, while strengthening research and utilization of the UK's foreign security review mechanism, actively utilizing multilateral and bilateral rules, and promoting the formation of new multilateral and bilateral rules.

5、 Conclusion

The foreign investment environment in the UK is relaxed, but due to the impact of Brexit and the Chinese economy, the UK's identity recognition has changed and it has begun to attach importance to the foreign investment security review mechanism. This mechanism is instrumental and influenced by identity cognition. China can promote the formation of new rules and achieve mechanism stability by influencing British identity recognition and utilizing its review mechanism.