2024 M&A Year in Review - Flipbook - Page 78
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FDI Regimes
FDI screenings in 2025 will be shaped by new national leaderships,
rapidly emerging technologies, and evolving geopolitical dynamics.
Heightened tensions between the United States and China — and to
a lesser extent, the European Union — are expected to continue to
influence the direction and enforcement of FDI regimes. Globally,
several new FDI frameworks are taking shape: Singapore’s FDI
regime is coming into force, changes are expected in Canada, and the
economic transformation of Gulf states, particularly Saudi Arabia, is
driving increased outbound investments by sovereign wealth funds.
In Europe, the focus on supply chain security and technology selfsufficiency is deepening. The European Union is advancing its
ambition to reduce reliance on non-European suppliers for critical
technologies. France is expected to tighten FDI controls around AI
and quantum technologies as part of its renewed emphasis on
“strategic autonomy.” Similarly, the Netherlands has announced
plans to expand its regime to include emerging technologies such as
AI and biotechnology, while Germany and Italy are likely to refine
their frameworks to balance economic openness with national
security concerns. The UK’s new government also has signaled a
review of its FDI regime, and Ireland’s long-anticipated FDI screening
regime is now in effect, with Bulgaria’s expected to follow soon.
In the United States, the Committee on Foreign Investment in the
United States (CFIUS) continues to play a central role in reviewing
both controlling and noncontrolling investments in U.S. businesses
with national security sensitivities or supply chain vulnerabilities.
The Trump administration is expected to maintain many of the
Biden administration’s priorities while expanding focus on China.
A newly issued National Security Presidential Memorandum
(NSPM) proposes certain measures, including a fast-track process to
facilitate investments for select allies, time-limited mitigation
agreements, and an expansion of CFIUS’s jurisdiction in critical
areas. In parallel, the administration is considering broadening the
outbound investment security program to cover a broader range of
technologies and Chinese-affiliated entities.
Heightened tensions
between the
United States and
China — and to a
lesser extent, the
European Union
— are expected to
continue to in昀氀uence
the direction and
enforcement
of FDI regimes.”
