France Expands Oversight of Foreign Investment in Strategic Sectors

France has expanded its scrutiny of foreign investments in key sectors such as defense, energy, telecommunications, and artificial intelligence. The country has lowered the threshold for mandatory investment reviews from 33.33% to 25% and has broadened the scope of sectors subject to review. Additionally, a decree issued on December 28, 2023, has reduced the voting rights threshold for non-EU and non-EEA investors in listed companies to 10% in certain cases. This tightening of regulations aligns with a broader trend among Western nations to enhance economic security in response to geopolitical concerns, particularly regarding China and Russia. The French Ministry of the Economy has reported on foreign direct investments, emphasizing the government's role in protecting national interests. France ranks ninth in the Critical and Emerging Technologies Index 2025, indicating its focus on maintaining control over strategic technological assets.