Impact of US investment restrictions on US-China relations

The White House issued a long-awaited executive order last week, accompanied by an advance notice of proposed rulemaking from the US Treasury Department. Hogan Lovells summarizes the key provisions. Martin Chorzempa of the Peterson Institute for International Economics calls the restrictions a sensible compromise, while the Center for a New American Security says they offer few surprises. Meanwhile, signs of economic weakening and decoupling continue to emerge from China. China’s foreign investment gauge declines to a 25-year low writes Bloomberg News, while the Wall Street Journal describes how the US and China are breaking up, in charts.

Mentioned publications

Executive Order on Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern – The White House, August 9, 2023
Provisions Pertaining to U.S. Investments in Certain National Security Technologies and Products in Countries of Concern – Office of Investment Security, US Department of Treasury, August 14, 2023
How will the latest US investment restrictions affect US investment in China?
Biden Administration issues long-awaited executive order on outbound investment screening – Hogan Lovells, August 10, 2023
A summary of the key provisions of the proposed rules.
Biden's new outbound investment restrictions with China are a sensible compromise, but further tightening is likely – Martin Chorzempa, Peterson Institute for International Economics, August 10, 2023
How should investors interpret the new US restrictions on investment in China?
CNAS Responds: Outbound Investment Executive Order – Center for a New American Security, August 9, 2023
The new executive order offers a few surprises to those following longstanding deliberations.
China’s Foreign Investment Gauge Declines to 25-Year Low – Bloomberg News, August 7, 2023
Per one measure, new foreign investment in China fell to its lowest level in 25 years.
How U.S. and China Are Breaking Up, in Charts – The Wall Street Journal, August 12, 2023
Trade statistics point to a significant decline in trade between the US and China.