The Lawfare Institute’s Post

The U.S. Senate voted 91-6 this week to approve an outbound investment notification as part of the NDAA. Previous attempts to establish an outbound investment tool have encountered significant political pushback, but this time is likely different. And, although an executive order has been in the works and "imminent" since last October, movement in Congress adds pressure on the White House to produce the EO in the coming days. It is therefore possible that we see an EO and a statutory support mechanism in the coming weeks, but -- as with most things in Washington -- it depends on the politics. In a piece for Barron's, I cover the basics and look at what this means for companies, countries, and geopolitics more broadly.

https://lnkd.in/e4TrRqEG ❔ Thinking about investing in the Netherlands? ▶ Check out our blog post covering the latest developments on (foreign) investment control in the Netherlands.

On January 24, the European Commission published a white paper on a possible regime for reviewing outbound foreign investments. The white paper did not lay out how such reviews would work or to whom they would apply; instead, it described the process for further study of the issue over the next 18 months before any policy decisions are taken. The Commission also indicated a preference for using existing regulatory tools and processes when possible. In essence, the Commission is saying that it wants to make sure that outbound foreign investment screening is not a solution in search of a problem. For more on the white paper and what the Commission will be looking for during its data gathering process, please see our latest Linklaters foreign investment blog post, linked below. #foreigninvestment #technology #eulaw

To mark the first anniversary of the #Netherlands investment review regime (which covers both domestic and foreign investments), our latest Linklaters foreign investment blog post reviews the basic elements of the regime and lessons learned about the length and transparency of the process. A couple of other highlights: -- The definition of sensitive technologies is so narrow that potentially concerning transactions are not subject to government review. -- The government is prepared to step up and invest directly in some companies rather than allow them to seek foreign investments. Check out our blog post for more. #foreigninvestment #nationalsecurity #technology

🇳🇱The Dutch (foreign) investment screening regime turned one last month. 💡Planning to invest in the Netherlands? Check out our blog post on the key lessons learnt from the first year in practice! Lodewick Prompers Lucas Macharis

Amendments and supplements to the Act on the Promotion of Investment (Domestic and Foreign) in the Republic of Slovenia. The National Parliament of the Republic of Slovenia has recently adopted a proposal for amendments and additions to the Investment Promotion Act. According to the new law, it will be possible to apply under this law before registering a company in Slovenia. This is a step towards de-bureaucratisation and an additional incentive for foreign investors to invest in Slovenia. The Investment Promotion Act had to be amended mainly to ensure compliance with European aid rules, which were amended in 2023. Under the new rules, an investor can apply for an investment incentive even before having a company or a branch of a foreign company registered in Slovenia. The condition is that either the company or the branch of the foreign company is registered in Slovenia at the latest at the time the incentive is paid. In addition, the possibility for a branch of a foreign company established in an EU Member State to receive an incentive is introduced, which means that if a company established in an EU Member State invests in the Republic of Slovenia, it will not be necessary to set up a new company here, but the registration of the branch of the foreign company in the Court Register of the Republic of Slovenia will be sufficient. The possibility of obtaining an incentive for a branch of a foreign company is a novelty added in the light of the guarantee of the fundamental freedoms (free movement of services and capital) applicable between EU Member States. It implies a de-bureaucratisation, thus further encouraging foreign investors to invest in the territory of the Republic of Slovenia. Continue in comments:

German Foreign Direct Investment Regulations - figures and data for 2023 now published by the German government - details can be found here: https://lnkd.in/eqnAXR4Q Some highlights: - Number of filings fallen to 257 (from 306 in 2022, i.e. minus 16 %). - Restrictive measures imposed in 10 cases (i.e. 4 %). - Approx. 75 % of the filings cleared in Phase 1 (i.e. within 2 months). - Constant share of US, UK and EU investments. - Chinese investments fell from 37 in 2022 to 21 in 2023. - Sectors of interests still led by Information, Communication &Technology and Health & Biotech followed by Energy (the latter being the "rising star sector").

🚀 Buckle up, US 🇺🇸folks! Major changes in the world of outbound investment are on the horizon. 🌎 💸On August 9th, the Biden Administration directed federal agencies to roll out a brand-new program. Its mission? Keep tabs on investments in sensitive tech sectors of "countries of concern." 💼💡 🔐 But here's the kicker: This program isn't just a spectator. It has the power to introduce serious risk to US investment firms and companies with ties to China. 🇨🇳💼 💼 The scoop?: Affected firms now need to notify the U.S. government about certain deals and seriously beef up their compliance game to navigate this investment risk maze. 🎢💼 💥 These measures will send ripples across the international investment landscape, affecting everyone from asset wealth managers to private equity players and venture capitalists. Even companies with China connections won't escape the spotlight. Tech, manufacturing, and cybersecurity investments are about to feel the heat. ☀️💼 🔗 The name of the game? Align your compliance programs with these new rules and get ahead of the curve. 💪💼 🖋️Mark your calendars and brace for impact. The program is still in the works, with final rules expected to hit the scene in late 2024. But the time to gear up is NOW. 💼 🔍 Here's what to keep an eye on during this rulemaking rollercoaster: - Compliance burden shifting to US persons. - Global reach: Restrictions may apply to US persons worldwide. - Exceptions for lower-risk investments: Details are evolving. - Consult with trusted advisors and express your views to the government. - Prep your firm for regulatory notifications. - Reinforce compliance resources. - Develop policies and procedures. - Monitor investments closely. - Prepare for risk mitigation strategies. - Stay on top of regulatory updates. 🚀💼 🌐 International investment just got a lot more intriguing! 🤝💼 To read the full report or to speak with someone to help you navigate this upcoming change, please refer to Amanda Cox’s post below. #Investment #BusinessNews #Regulations #Compliance #BidenAdministration

Following the UK Government’s call for evidence on the NSIA, we outline our proposals to make the UK foreign investment screening regime more business-friendly, by reducing the number of non-critical cases being screened, clarifying the scope of the 17 mandatory sectors, improving clarity on when a filing is required, and providing better certainty and transparency for businesses.

UNCTAD just published the World Investment Report 2024. It not only shows that global FDI declined by some 2% to about US$1.3 Trillion in 2023 but also all the details of how investments were redirected and flowing in recent years and what the future is likely to bring. While you are at it, check out what the Council on International Law and Politics is working on in the field of int'l investment law... https://lnkd.in/gg6ShC_5