National security Dechert’s 2025 FDI and National Security Review notes that there are now more than 50 foreign direct investment (FDI) screening regimes in place across more than 100 jurisdictions, which means that deals are not only reviewed on purely competition grounds, but also on the basis of possible risks to national security. The reach of “national security” regimes has expanded beyond traditional military-linked deals to include areas such as advanced technology, data and supply chains. For all PE dealmakers, merger and export control analysis and national security reviews are becoming essential parts of pre-deal screening and due diligence, with a direct impact on willingness and ability to engage in deals. Respondents are split when asked whether increased foreign investment and national security-related scrutiny from regulatory authorities will have a positive or negative impact on the willingness and ability of their firms to engage in deals over the next 12 months. Just over a third (35%) expect the impact to be positive versus 43% who feel it will be negative. EMEA respondents, at 43%, are the group that most commonly believe their firms’ willingness/ability to engage in deals over the next
12 months will be positively impacted by increased foreign investment and national security-related scrutiny from regulatory authorities, compared to just 27% of North American respondents. Dechert notes that in 2026 the investment community should expect governments to continue to link tariff and trade policy with national security objectives, particularly in semiconductors, AI infrastructure, critical minerals and other critical supply chains. Early regulatory mapping to assess potential exposure and manage transaction risk remains essential. 35% of respondents expect increased foreign investment and national security-related scrutiny from regulatory authorities to have a positive impact on their firm’s willingness/ability to engage in deals over the next 12 months.
What impact does increased foreign investment and national security-related scrutiny from regulatory authorities have on your firm’s willingness/ability to engage in deals over the next 12 months? (Select one)
33%
22%
37%
6%
TotǸl
2%
AsiǸ-PǸcific
40%
20%
30%
10%
EMEA
6%
37%
14%
37%
6%
North AmȃricǸ
27%
29%
40%
4%
SiȌnificǸnt positivȃ impǸct
Positivȃ impǸct
No discȃrniblȃ impǸct
NȃȌǸtivȃ impǸct
SiȌnificǸnt nȃȌǸtivȃ impǸct
40
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