As geopolitical tensions rise and de-globalization trends gain momentum, many governments frequently use foreign investment screening mechanisms to strengthen their competitiveness and reduce dependence on other nations. However, governments’ screening decisions based on national security reasons are not always in line with the interests of the domestic target company. With more takeovers being blocked due to national security concerns, domestic businesses may face challenges securing the necessary funding, miss out on essential innovations or operational improvements, struggle to penetrate foreign markets and be indirectly hurt by trade or investment retaliation. This chapter focuses on the conflict between the host states and the domestic companies targeted to be purchased by foreign investors. In current geoeconomics uncertain times, the complexity of defining national security and the government’s broad discretion in this issue increased the difficulty of achieving a proper balance. It has been widely accepted that state intervention is necessary in the case of market failure. However, to what extent the government can intervene, and whether the government shall play a relatively restrained or active role in balancing the conflict between public and private interests is difficult to define. This chapter argues that efforts to readjust the balance of interests can be undertaken from both the corporate and government perspectives. It concludes with implications that policymakers should be aware of in foreign investment screening, particularly in balancing national security concerns with the autonomy of domestic companies in the cross-border takeover market.