Recent years have witnessed a gradual and then steep increase in government attention to national security implications that may be associated with certain international investments. Geopolitical, geo-economic developments and technological changes have prompted governments to adjust their policies to address changing risks perceptions. 

A greater diversity of economies as sources of international investment, participation of State-guided investors that may pursue their sponsors’ strategic objectives, a decline of the consensus on values and on rules for international economic interactions, and concerns about the security of supply of essential products and services are among the main drivers of the increasing attention to the security implications of international investment. Technological breakthroughs with yet unknown but likely sensitive applications, the fading of distinctions between commercial and military applications, and the growing volume of sensitive, personal data in the hands of private enterprises have brought non-traditional sectors under the scope of reviews. 

At least in advanced economies investment screening – a case-specific review from a class of potentially risky transactions as defined in legislation – has become the standard tool to manage such risk. Other, often older mechanisms coexist with investment screening mechanisms.