Companies, organizations, investors, and counsel must navigate a turbulent international business and regulatory environment. A potent combination of the Covid 19 epidemic, geo-political tensions, divisive and unpredictable electoral politics, and technological acceleration and convergence has dramatically impacted government policy, regulations, and enforcement activity regarding foreign investment, international trade and technology transfers, and data and supply chain security. Heightened national security-related risks and requirements, include (among others):

• Expanded regulatory and enforcement authority related to national security review of Foreign Direct Investment and telecommunications licensing, including multiple recent mandatory divestitures;
• Increased regulation of exports, including foreign-produced products using US technology; emerging and foundational technologies (e.g., artificial intelligence, advanced computing, data analytics, and biotechnologies); and restrictions on many US technology exports to Hong Kong and to numerous Chinese end users;
• Heightened expectations and requirements regarding sensitive information and cybersecurity;
• Increased focus on supply chain and information network security, including prohibition on the use of IT and communications technology and power infrastructure sourced from companies or nationals of US adversaries; and
• Numerous US criminal investigations of alleged Chinese espionage and/or funding involving research institutions.

These dynamics are not limited to the United States. Australia, Europe, Canada, Japan, Israel, and China, among others, are reevaluating or changing their national security-related investment, trade, technology, and supply chain controls to account for a more contentious and unstable global environment.

While this turbulent environment presents new challenges for transactions and operations, it also creates opportunities for companies, organizations, investors, and counsel who engage and adapt. Companies, organizations, and investors that plan for and implement effective proactive, reactive, and mitigation strategies to navigate emergent security and regulatory risks and requirements will have an advantage in the market and unlock value for their stakeholders.