26th Parliamentary Intelligence-Security Forum – Adversarial Foreign Investments And Reverse CFIUS

Hon. John Strand, CEO of Strand Consult, expressed gratitude for an invitation and addressed the challenges faced by small countries in implementing foreign investment screening. Drawing from Denmark’s experience, he highlighted the Danish Act for Foreign Investment Screening, implemented a year ago, as a successful model.

Key points include:

Two-Sided Model: Denmark’s approach combines rules for foreign investments and equipment acquisitions into a unified law, treating them as interconnected issues.

Inclusivity: The law applies to both foreign companies investing in Danish ones and Danish companies using equipment from non-partner countries, without distinction.

Clear Framework: Denmark has identified five industry sectors, including defense, ICT security, dual-use products, and critical technology, where the law applies.

Limitations: The law includes a minimum investment threshold of 10% and encompasses joint ventures, partnerships, and suppliers.

EU Framework: Denmark, as an EU member, adheres to a clear framework, also covering agreements with non-EU countries like Norway and Switzerland.

Public Sector Inclusion: The law applies not only to private companies but also to public-sector entities.

Simplicity and Implementation: Described as a simple and easy-to-implement model, the law has already been effectively used to compel a major telecom company to remove Huawei equipment from vital infrastructure.

Information Sharing: Hon. Strand encouraged sharing the translated law with other nations, emphasizing its potential for swift implementation.

In conclusion, Hon. Strand highlighted the accessibility of the model, encouraging other countries to adopt it without the need for extensive groundwork.