Foreign investment monitor #9

Executive summary

Welcome to our ninth Foreign investment monitor. In this edition, we delve into the evolving landscape of foreign direct investment (FDI) and national security regulations worldwide.

Foreign investment is becoming increasingly complex as governments worldwide reassess their national security priorities, reshaping FDI regimes. Investors need to be proactive, staying abreast of evolving regulations to navigate both challenges and opportunities.

Foreign investment is undergoing a rapid transformation, driven by political shifts in key markets such as the US, UK, and France, along with rising national security concerns. From tighter scrutiny by CFIUS in the US to the UK’s expanding National Security and Investment regime, and France's balancing act between market openness and protecting critical sectors, investors are faced with an increasingly complex regulatory landscape. At the same time, evolving FDI regimes in China and the EU are adding further layers of complexity. In this environment, staying agile and understanding these changes is essential for managing risks and seizing new opportunities in a fast-evolving global market.

This issue covers key developments that every investor needs to know:

1. Elections redefine FDI regimes: strategic adaptation is key
Shifts in the US, UK, and France are reshaping FDI frameworks, requiring businesses to adapt to new political priorities.

2. The new CFIUS reality: non-Chinese investors face growing challenges
CFIUS expands its scrutiny beyond China, creating new hurdles for non-Chinese investors.

3. China’s foreign investment regimes balance openness and security
Investors must navigate the evolving dynamics between China’s liberalized FDI regime and tighter national security regulations.

4. Spain derails an intra-EU deal on FDI grounds: reasonable concerns or protectionism?
Spain’s block of an acquisition highlights rising scrutiny within the EU over national security concerns.

5. The UK’s national security regime matures amid new government priorities
With a new government focus on growth and security, the UK’s National Security and Investment regime is evolving.

We also showcase the new Foreign Investment Regulation publication featuring contributions from Freshfields.

This edition of Foreign investment monitor provides actionable insights to help your business stay ahead of regulatory changes, ensuring you are well-equipped to make informed decisions in a rapidly shifting global market. Freshfields is here to support you every step of the way.