The rapidly changing regulatory environment creates risks and
uncertainty for investors considering cross-border investments.
Going forward, we expect investments in the technology space to
be subject to close scrutiny.
A paradigm shift
There has been a paradigm shift in the scope and intensity of
regulatory scrutiny of transactions involving FDI in recent years.
This global trend has accelerated due to the impact of Covid-19,
which has heightened concerns over opportunistic acquisitions of
strategic assets and "home grown" local champions.
The impact of expanding foreign investment scrutiny has been
particularly pronounced in the tech sector. Technology, data, and
communication infrastructure are all increasingly now perceived as
central to the national interest and industrial policy, against the
backdrop of a new global "technology race".
