Global Trends in FDI Control
Workshop Series 1 : 10:30am - 11:30am
Workshop Summary
This workshop will examine the latest trends in FDI control, the evolving regulatory landscape, and the outlook for 2025 across key jurisdictions, offering strategic insights for investors navigating this complex environment.
Speakers
Gilles Lebreton
Partner
Clifford Chance
Guillaume Granier
Senior Managing Director
FTI Consulting
Moderator
Arnaud de Nanteuil
Professor of Law
Université Évry Paris-Saclay
What are the key developments we’ve seen in FDI control across France, and EU Member States more generally since the October 2024 OECD report?
How are evolving definitions of "national security" shaping the global FDI landscape, and what implications does this have for investors navigating cross-border transactions in 2025?
With increased regulatory complexity and divergent national approaches, what steps can be taken toward greater international coordination or harmonisation of FDI control frameworks?
How can investors adapt to stricter FDI screening regimes - including lower thresholds, identity-based conditions, and enhanced enforcement powers - while maintaining strategic agility and compliance?
Key Questions
In the first half of 2024, global FDI flows reached USD 802 billion, marking a 31% increase compared to the same period in 2023. The United States emerged as the largest recipient of foreign direct investment during this period, followed by Brazil and Mexico. Despite this rebound, overall FDI flows remained below the half-year levels recorded in 2021 and 2022. These fluctuations underscore persistent global economic uncertainties, driven by geopolitical tensions and diverging national investment policies. Although the uptick in early 2024 signals a potential recovery in global investment activity, the durability of this trend remains unclear and will depend heavily on the broader economic and political outlook.The evolution of FDI regulations has therefore become a critical tool in managing security risks associated with international investments. Governments are redefining the concept of "national security" to address emerging threats, leading to the introduction of new regulations and innovative enforcement tools.
To meet these evolving challenges, FDI control mechanisms have undergone significant adjustments. Stricter notification requirements with lower reporting thresholds have been introduced, while additional conditions and commitments are being imposed on investors. Regulations now differentiate based on the investor’s identity, and authorities have been granted expanded powers to enforce compliance and impose sanctions. The scope of FDI control has also broadened considerably. Initially focused on defense-related industries and activities directly tied to national security, FDI regulations have since expanded to cover critical infrastructure and emerging technologies. More recently, sectors such as energy, raw materials, and telecommunications have come under increased scrutiny. The COVID-19 pandemic further underscored the strategic importance of health infrastructure and biotechnology, which are now included within FDI screening mechanisms.
Despite these developments, global responses remain inconsistent, highlighting the need for greater harmonisation. While governments continue to strengthen their FDI frameworks, international cooperation is increasingly necessary to ensure regulatory clarity and address investor concerns.
Corporate Sponsors
Academic Sponsors
Jose Antonio Zamora de L'Hôtellerie-Fallois
General Sub-Directorate
Foreign Investments
Spanish State Secretariat for Trade