Foreign Direct Investment (FDI) Control

Recent trends in Foreign Direct Investment (FDI) control regimes resemble developments in merger control in the 1990s. More and more countries introduce regimes, ramp-up enforcement and assume jurisdiction over global transactions. Where existing regimes are in place, they tend to be extended, like in the US where the CFIUS regime was broadened under the Trump administration, with no signs that the policy will be reversed. The UK’s FDI regime is even stricter than its merger control regime, requiring mandatory notifications where the latter is based on voluntary filings. In the EU, FDI control is essentially national and EU harmonisation is limited to common minimum standards and information exchange. New regimes appear in Asia, notably in China.