The article discusses the increasing scrutiny of outbound investments amid a changing geopolitical landscape. As governments expand their foreign direct investment (FDI) screening regimes, concerns over economic dependencies and technology transfers are at the forefront. Countries like the US, EU, Japan, and others are actively developing regulations to monitor outbound investments, particularly in sensitive sectors such as technology and national security.
Key Points
- Governments are increasingly implementing outbound investment screening methods to protect national interests.
- More than 100 jurisdictions now apply FDI screening, complicating cross-border investments.
- Executive Order 14105 in the US restricts outbound investments in critical technologies to certain countries from January 2025.
- The EU is reviewing outbound investments in key technology areas to assess risks to economic security.
- The UK signals its intent to strengthen its outbound investment regulations under the National Security and Investment Act.
Why should I read this?
If you’re involved in cross-border investments, this article is a must-read! With regulations tightening across major economies, understanding the implications of outbound investment restrictions can save you hassle in the long run. It’s a complex landscape that affects corporate strategy and could impact your next big deal. We’ve done the heavy lifting so you can stay ahead of the game.
