Shift in US approach to foreign investment

This week, the Biden Administration adopted the first executive order on CFIUS, expanding the scope of foreign inbound investment reviews to cover key areas, reports Nikkei Asia. It is also considering an executive order to screen US outbound investments in China, per the Wall Street Journal. What might this mechanism look like? The Atlantic Council proposes ideas.

Data on foreign investment flows into China may be distorted by offshore Chinese companies routing investments through Hong Kong, says Bloomberg.

Mentioned Publications

FACT SHEET: President Biden Signs Executive Order to Ensure Robust Reviews of Evolving National Security Risks by the Committee on Foreign Investment in the United States – The White House, 15 September 2022
Biden orders deeper foreign investment reviews in chips, supply chains – Jack Stone Truitt, Nikkei Asia, 15 September 2022
A new executive order expands the scope of CFIUS to scrutinize foreign investments in key areas.
White House Weighs Order to Screen U.S. Investment in Tech in China, Other Countries – John D. McKinnon, The Wall Street Journal, 8 September 2022
The White House may issue an executive order for an outbound investment screening mechanism.
Sand in the silicon: Designing an outbound investment controls mechanism – Sarah Bauerle Danzman and Emily Kilcrease, Atlantic Council, 14 September 2022
What might an outbound investment review and control mechanism look like?
China’s Foreign Investment Data Distorted by Hong Kong Flows – Bloomberg News, 6 September 2022
Growth in China’s foreign investment is coming from offshore Mainland companies, not foreign ones.