Executive Summary
This paper analyzes how investment screening, traditionally used for the defense sector, is now being applied to broader economic areas under the guise of 'economic security'. It argues that the concept of national security is expanding to include dual-use technologies, critical infrastructure, and even food security, leading to increased state intervention and protectionism. This trend, exemplified by EU policies and specific cases in Germany and France, blurs the line between legitimate security concerns and economic protectionism, creating a new geoeconomic paradigm.
Why It Matters
This document is crucial for defense and geopolitical analysts as it details how national security concerns, particularly economic security, are increasingly used to justify state intervention and protectionism beyond traditional defense sectors, impacting international economic law and strategic competition.
Key Takeaways
- Economic security is increasingly used to justify state intervention and investment screening across various sectors, not just traditional defense.
- The concept of national security is broadening to include economic, food, data, and research security, expanding the scope of protectionist measures.
- Insights from defense industry protectionism can inform the application of security exceptions to other economic sectors, potentially challenging international economic law.
- The expansion of national security to include economic security justifies increased state intervention, often prioritizing security over liberal market principles.
Strategic Relevance
The paper highlights a significant shift in global economic policy where national security, particularly economic security, is overriding free-market principles. This has profound implications for international trade, foreign direct investment, and geoeconomic competition, affecting supply chain resilience, technological independence, and strategic alliances.