Global foreign investment flows have a crucial role to play in economic growth. Dismantling government approvals and controls over inbound investments is often seen as a key factor for assessing ease of doing business.
At the same time, regulatory controls continue to play a key role in assessing investments in sensitive areas for a country. In several countries across the world, including Australia, Canada, Germany, the US and the UK, there has been increasing focus on review and screening of foreign investments from a national security perspective.
Every country clearly has a sovereign right to determine what would qualify as a ‘national security’ related concern. At the same time, the recent trend of increased tariff imposition especially by the US, on the pretext of ‘national security’, has raised concerns about the fine line between a genuine security concern and arbitrary protectionist action.