The relatively free cross-border flow of goods, capital, information and people that have characterized globalization for decades is being replaced by regulatory "clubs" and "fences"

Growth and investment in generative artificial intelligence (GenAI) lifted the technology sector after a slowdown in transaction activity throughout 2023, but regulatory challenges loomed large

M&A and debt market activity declined in 2023, as high interest rates and macroeconomic dislocation saw increasingly cautious dealmakers and lenders put deployment on hold

The war in Ukraine and high energy prices challenged energy transition timetables, but governments and investors were determined to stay the course

Sunset in a city park in China.

Bulgaria established a foreign direct investment screening mechanism. Foreign investors' obligation to file for investment clearance will become effective after implementing regulations are in place.

Taiwan continues to promote FDI under a two-track screening mechanism for foreign and PRC investors.

After a number of years of amendments under the OIA from 2018 to 2021, New Zealand has seen a period of stabilization of the overseas investment regime.

The Republic of Korea continues to welcome foreign investment, with the government actively seeking to ease regulations and update the regulatory framework to be in line with global standards.

Certain businesses related to "Specifically Designated Critical Commodities" have been designated "core" sectors subject to Japan's FDI regime, FEFTA.

India continues to be an attractive destination for foreign investment, ranking as the world's eighth-largest recipient of FDI in 2023.

While restricting the data transfer relating to national security, China issued guidelines to further optimize its foreign investment environment. 

Australia's stringent foreign investment regulations, overseen by the Treasurer and FIRB, safeguard national interests and security.

Now into its second year of operation, the UK's National Security and Investment Act 2021 has become a standard feature of UK transactions for both foreign and domestic investors in certain sensitive sectors.

Foreign direct investment is permissible in the UAE, subject to applicable licensing and ownership conditions.

Making Türkiye an attractive investment destination continues to be a priority for the government.

Historically, Switzerland has been very liberal regarding foreign investments. However, there has recently been increased political pressure to create a more structured legal regime for foreign investment.

In December 2023, Sweden adopted and implemented a new FDI regime, meaning that a general FDI screening mechanism now applies in relation to investments in certain Swedish businesses.

Certain foreign direct investments in Spain are subject to scrutiny under the Law 19/2003 (Law on the movement of capital and foreign economic transactions and on certain measures for the prevention of money laundering).

Since May 31, 2020, certain foreign investments into Slovenian companies can be subject to foreign direct investments review. Incorporation of new companies and business units can also be screened.

The new Foreign Investments Screening Act entered into force in Slovakia on March 1, 2023.

Russian laws regulating foreign investments have been considerably amended in 2023 to extend the scope of the laws as well as to strengthen control in this sphere.

The Romanian regime regarding foreign direct investment appears to have become more stable in 2023, but continues to surprise.

In Portugal, transactions involving acquisition of control over strategic assets by entities residing outside the EU or the EEA may be subject to FDI screening.

The Polish FDI regime – ambiguous rules, no blocking decisions and evolving market practice.

The foreign direct investment regime in Norway is subject to upcoming changes, with further changes expected to come.

The Netherlands, complementing its existing sector-specific regulations, has introduced a general investment screening mechanism to enhance the protection of its national security across a broader range of sectors.

The Middle East continues to welcome foreign investment, subject to licensing approvals and ownership thresholds for certain business sectors or in certain geographical zones.

Malta's FDI regime regulates transactions that must be notified to the authorities and, in some cases, will be subject to screening.

In 2023, Luxembourg adopted a national screening mechanism for foreign direct investments.