Both Donald Trump and Joe Biden sought to increase federal scrutiny over U.S. outbound foreign direct investment (FDI) into China and other “countries of concern.” However, their approaches to restricting outbound FDI differed in respect to scope, targeting, and preferred implementing agencies.
Trump experimented with a narrower, entity-based strategy, leveraging existing statutes to task the Department of Defense (DOD) with identifying companies contributing to China’s “Military-Civil Fusion” (MCF) and having the Treasury Department implement the sanctions.
Biden expanded Trump’s targeting policies but granted Treasury clearer responsibility for both targeting and restricting investment in entire sectors – notably high-end semiconductors – linked to China’s defense, intelligence, and security apparatus. Biden also aimed to restrict investment in Chinese companies accused of developing, using, and exporting surveillance technology that faciliated human rights abuses.
A second Trump term would likely build on Biden’s expanded targeting and 2023 Executive Order on outbound investment, but perhaps re-emphasize aggressive curbs on an entity-by-entity basis and renew prominent rhetoric about China’s MCF. A re-elected Trump could also restore the DOD as the initial arbiter of MCF-related targeting, rather than relying on Treasury. A second Biden administration will almost certainly intensify its current regime of sector-based outbound investment controls.
“China has the capacity to retaliate hard and fast, but seems intent to demonstrate strength while avoiding unnecessary escalation to ...
Scroll to Top
You Are Applying For:
Biden vs. Trump: Outbound FDI Regulation
Apply Now
Submit the details below, and our HR team member will get in touch with you shortly.
The Asia Group is an equal opportunity employer where an applicant’s qualifications are considered without regard to race, color, religion, sex, national origin, age, disability, veteran status, genetic information, sexual orientation, gender identity or expression, or any other basis prohibited by law. The Asia Group continually seeks to diversify its staff, particularly to broaden opportunities for individuals from demographic groups that are historically underrepresented in the strategic advisory profession.
Media
Commentary
Biden vs. Trump: Outbound FDI Regulation
Key Takeaways
Listen on:
Related Posts
TAG Vice President Sam Ide Comments on PVH’s Unreliable Entity List Designation to CNN Business
TAG China Country Director Han Lin Joins the BBC World News on Live TV to Discuss U.S.-China Tariffs
TAG Managing Director George Chen Comments on U.S. Companies Being on China’s Unreliable Entities List
TAG China Country Director Han Lin Comments about U.S.-China Tariffs in the Wall Street Journal