International investments
Foreign investments mean that someone from abroad buys a company or part of a company in a country. This is normal, and most of the time unproblematic. In fact, a range of benefits may come from foreign investments, both for the company in question and for the country in which it is located.
Who, then, are buying companies in other countries? Normally, it is other, often multinational, companies that are privately owned. However, as of late, we see that some of these companies indirectly or directly also represent the interests of other states. A worry is therefore that foreign investments and the buying of companies can be used as a power-political instrument in the relations between states. This worry is partly a result of changing patterns of investments flows, where China, Russia and Gulf States have become more significant actors.
Usually, investments from such countries are also unproblematic but in the worst-case scenario, such investments can be used by other states as a basis for espionage, or as a means to gain leverage and exert political pressure on other countries.
An increasingly important question is therefore how liberal open societies can reap the benefits of open economies, but also protect their legitimate security interests. Where and how should we draw the borders between what is acceptable and normal, and the few cases where foreign investments may be a risk to society? Should a country decide this alone, or do we need international cooperation concerning the rules for screening foreign investments? If we can stop some kinds of investments, is there a danger that this can be abused for other purposes beyond societal security?
Researchers at Nupi therefore work to better understand the relationship between the benefits of foreign investments and how to best protect legitimate national security concerns.
News about international investments
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Chinese and Japanese investments in Myanmar – what determines their environmental friendliness?
24 Jun 2021What determines whether companies investing in developing countries proceed in an environmentally friendly way? A new article published at level 2 by researchers at Harvard and NUPI examines this question.
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NUPI replaces NRK P2's 'Ekko' this week
7 Dec 2020NUPI has produced ten hours of high quality radio about foreign policy and international relations. The programs will air on NRK P2 during week 50, Monday to Friday from 9.00 to 11.00. Tune in!
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Norwegians adapting to a changing world
17 Jun 2020The world as we have come to know it is changing. How do Norwegians respond to these changes? What are their views of Norwegian foreign policy?
Publications about international investments
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Publication
: Academic article
Huawei, 5G and Security: Technological Limitations and Political Responses
2021How did Chinese 5G providers, such as Huawei, become a security concern in the USA and Europe? Were the security concerns related to 5G and Chinese suppliers based upon technological features of the systems, or were they a product of geopolitical rivalry? How did European approaches to 5G distinguish... -
Publication
: Academic article
Norges debatt om kinesiske investeringer: Fra velvillig til varsom
The debate in Norway regarding security concerns related to Chinese investments has seen a notable change in character over a short period of time. From a situation where there was little discernible debate at all, and where negative coverage of Chinese investment flows were mainly concerned with working... -
Publication
: Academic article
Environmental performance of foreign firms: Chinese and Japanese firms in Myanmar
Little is known about how the environmental approaches of foreign investors in developing countries are formed. The objective of this study is to conceptualize and investigate the drivers of the environmental performance of foreign firms. This is done through a comparative analysis of the environmental...
Research projects about international investments
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Research project
Consequences of Investments for National Security (COINS)
2019 - 2023 (Ongoing)How can liberal open societies reap the benefits of open economies, but at the same time protect their legitimate security interests? In the project “Consequences of Investments for National Security”...