Abstract

State-Controlled Enterprises (SCEs), either as Sovereign Wealth Funds (SWFs) or as State-Owned Enterprises (SOEs) are a rising cause of concern among states receiving their investments. Not only the possibility of creating market distortion but also the ties of SCEs with their home state governments arouse distrust in several host states. Although international instruments have been developed to address most of the criticisms of investments made by SCEs, states prefer to rely on domestic regulations. In this context, investment screening laws are becoming more popular in the recent years. States avail themselves of concepts such as ‘national security’ or ‘essential security’ as a way to preserve the utmost autonomy and discretion in designing those laws. Nevertheless, investment screening could go beyond legitimate concerns towards investments of SCEs leading to undercover economic protectionism. 

This paper will be part of the TDM Special Issue on "The Changing Paradigm of State-controlled Entities Regulation: Laws, Contracts and Disputes". More information here www.transnational-dispute-management.com/news.asp?key=1719