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7 National Security and FDI Screening in Russia, Japan, India, and South Africa

From: Merger Control, National Security, and Foreign Direct Investment Screening: A Comparative Perspective (1st Edition)

Ioannis Kokkoris

From: Oxford Competition Law (http://oxcat.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 19 July 2024

Subject(s):
Merger control

This chapter examines FDI rules in Russia, India, Japan, and South Africa, discussing how national security concerns and economic goals shape FDI policies. In Russia, FDI rules safeguard strategic industries and counter economic sanctions. The chapter highlights how Japan’s efforts to attract foreign capital are in tension with its historical and cultural resistance to foreign takeovers. Similar considerations might apply to India: while the country has increasingly opened up to foreign investment, various restrictions and concerns over transparency and simplicity remain. In South Africa, despite attempts to attract foreign investors, high crime rates and social instability have historically deterred FDI. South Africa’s unsuccessful endeavour to reconcile two policies at odds: protecting foreign investors’ rights while prioritizing local social development are evaluated. The chapter emphasizes the need for a nuanced approach that addresses investor protection and broader societal goals, especially in countries grappling with economic uncertainty.

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