This chapter reviews recent developments in the Ralls case, which concerns the mandate and jurisdiction of the Committee on Foreign Investment in the United States (CFIUS). It analyzes China's official response to the CFIUS practices, a recently proposed national security review mechanism in the draft of the People's Republic of China (PRC) Foreign Investment Act, released in January 2015. The chapter introduces the current practices of the CFIUS, followed by a review of the Court of Appeals's decision on the Ralls case. It discusses the proposed Chinese national security review mechanism, followed by an analysis of the notions underlying the review criteria in both the United States and China and forecasts future development. The chapter reviews the most recent developments in national security review of foreign direct investment in the United States and China. It argues that they seem to be going in different directions.