Foreign investment screening mechanisms and emergent geographies of (post)globalization

Abstract

Technologically advanced states and large emerging economies increasingly use foreign investment screening mechanisms (FISM) to block inward foreign investment targeting sectors considered critical. Is the proliferation of FISM auguring an era of deglobalization, a re-assertion of national-state sovereignty over globalized economic ties, and the end of neoliberal orthodoxies of liberalized investment regimes? To answer these questions, the article draws upon geographic political economy and legal geographies. It argues that the multiplication of FISM is a response to a strategic context defined by three macrogeographic trends: (1) contemporary industrial restructuring and the salience of intellectual property-based monopolies; (2) a historic episode of centralization of capital driven by strategic mergers and acquisitions; and (3) evolving landscapes of state capitalism under conditions of intensified geoeconomic competition. Although FISM reproduce the fiction of state power as expressing the will of the sovereign nation to defend itself against foreign interference, market distortion, and technology theft, they consist of legally enshrining state authority to support national champions, and making sure they engage favorably with competitive dynamics of capital centralization, notably by conserving their monopoly over key intangible assets and strategic resources. FISM are best seen as tools that explicitly mobilize state power and coercion to aggressively (re)negotiate globalization.