National security looms large for foreign investment By Stephen Kirchner Tuesday April 20, 2021 Foreign investment uncertainty nearly doubled for the four quarters of 2020 compared to the average for 2019. (Image: Adobe/Dilok) There was a significant slowdown in foreign direct investment (FDI) in Australia during 2020. Gross inbound transactions fell from nearly $60 billion in the year-ended 2019 to only $33.6 billion for the year-ended 2020, about half the average pace seen in recent years. Uncertainties related to the pandemic weighed on investment decisions and cross-border capital flows globally. In Australia, the government instituted a temporary zero-dollar screening threshold for foreign acquisitions, fearing the opportunistic acquisition of distressed Australian businesses by foreign interests.