In our global economy, foreign investment regimes are an important element of safeguarding national security and national interests, coupled with economic growth. The scope and breadth of foreign investment reviews by government bodies across the globe have continued to evolve on an increasing tangent. In recent years, growing geopolitical tensions have led to more stringent foreign investment regimes around the world.
In the 12th edition of In-depth: Foreign Investment Regulation, expert practitioners explore how 24 jurisdictions are adapting their foreign investment frameworks to address various challenges. We examine the heightened scrutiny of foreign investments, particularly in sensitive sectors such as technology, infrastructure and natural resources.
Increasing geopolitical tensions have led to heightened focus on this important area. The continuing war between Russia and Ukraine, the ongoing serious military conflict between Israel and Hamas, which risks a broader conflict in the region, and the increasing tensions between China and the United States together with its Five Eyes intelligence alliance, are all significant recent sources of increasing geopolitical conflicts in international affairs.
These developments also give rise to heightened national security and national interest considerations applicable to foreign investment reviews. The trend in many jurisdictions is to enforce more stringent foreign investment reviews of international transactions. Regulatory enhancements in this area go beyond the defence sector, as the protection of industries that are integral to a nation's secure economic development, such as advanced and sensitive technologies as well as critical minerals, are generally focal points in protecting national security and national interest.
In the context of these significant developments, this publication will be a valuable guide for businesses and their legal counsel considering transactions that may trigger a foreign investment review. Read more here.