2024 M&A Year in Review - Flipbook - Page 79
M&A Year in Review | 2024
Across other advanced economies — especially in
Europe, North America, and East Asia — FDI screening
regimes have become increasingly rigorous, particularly
in sectors involving critical infrastructure, advanced
technologies, and defense. In contrast, jurisdictions in
Asia, the Middle East, Africa, and Latin America take a
more lenient approach, requiring FDI filings less
frequently outside of sensitive areas. This trend is
expected to continue as many of these more
challenging or growing economies look to avoid
jeopardizing foreign investment.
China’s FDI regime remained largely unchanged in
2024, but rising trade tensions and macroeconomic
pressures have prompted a more proactive policy shift
in 2025. The Ministry of Commerce (MOFCOM) and
National Development and Reform Commission
(NDRC) have introduced a 2025 action plan aimed at
strengthening foreign investor confidence and
attracting high-quality foreign investments aligned
with national economic objectives. Key priorities
under the action plan include: i) further liberalizing
of market access (including the long-restricted
telecommunications, medical, and education markets)
to foreign investors by reducing the national or free
trade zone negative lists for foreign investment; ii)
enhancing the clarity, flexibility, and enforcement of its
FDI regime by amending or implementing regulations
on investment, financing, and M&A; and iii)
implementing other measures to facilitate foreign
investors such as expanding the scope of entry visa
exemption. Despite these efforts, the PRC national
security review regime and technology/data export
controls will remain key considerations for transactions
involving the outflow of PRC technology or data, even
in sectors not explicitly listed in China’s negative lists.
See our Global
FDI Legal Guide
and our Foreign
Investment Control
Advisor for more
insights.
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