National Security Unbound: U.S. Investment Screening from Inbound to Outbound
This Article addresses the evolving concept of national security within the framework of U.S. foreign economic policy, with a specific focus on the introduction of the National Critical Capabilities Defense Act (NCCDA) of 2023. The problem it tackles is the increasing risk to national security posed by outbound investments. This risk is especially significant in light of technological advancements and economic interdependence, which have not been adequately addressed by traditional national security measures that are focused primarily on inbound investment screening. This issue is significant and novel because it represents a conceptual reorientation in the legal approach to national security, expanding its scope to include economic and technological dimensions that are crucial in the context of global geopolitical tensions, particularly with China. The inauguration of President Donald Trump in 2025 underscores the enduring significance of this transformation, as the new administration continues to prioritize national security in foreign economic policy. This Article demonstrates how the NCCDA and subsequent legislative and executive actions mark a strategic pivot in U.S. policy, aiming to prevent outbound investments from enhancing the technological and military capabilities of potential adversaries. This doctrinal evolution is shown to blur the lines between economic policy and national security, introducing a preventive approach to national security threats. The importance of this Article to national security scholarship lies in its detailed analysis of how the United States is redefining national security to include the safeguarding of economic prowess and technological edge. This redefinition has significant implications for the norms governing both domestic and international economic activities, challenging traditional tenets of globalization and necessitating a reassessment of international economic cooperation mechanisms. The Article argues that this approach sets a precedent that could reshape global norms and practices around investment and trade, underscoring the interdependence of economic strength and national security in contemporary geopolitical strategy.
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