The US's creeping protectionism may curb appetite for dealmaking

For domestic corporations, executing an expansion strategy abroad - already a challenging enough undertaking with financial and legal risks, apart from cultural barriers - is threatening to become a great deal more onerous.

Companies may now need to recalibrate their strategies as they face another fog to navigate in the face of creeping protectionism in their target home bases. This could hamper market sentiments, corporate investment appetite - and even the prospects of international deal flows.

One stunning reality check emerged this week when US President Donald Trump blocked what would have been the biggest deal in tech history - the US$117 billion bid by Singapore-based Broadcom for San Diego-based Qualcomm - on national security grounds. The move by the world's largest economy that has traditionally been known for its open door policies on foreign capital could set the tone for cross-border M&As. Or, at the very least, it should prompt companies to throw politics in the mix of potential risk factors as they contemplate their expansion agenda.