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The U.S. is not expected to screen outbound investments unless something dramatic forces its hand, a key Trump administration trade official told Nikkei, downplaying a proposal here aimed at preventing sensitive technologies from leaking to China.

“Outbound investment restrictions can be used to prevent, to a degree, technology transfers when export controls have not met the challenge,” said Nazak Nikakhtar, who served as acting undersecretary of commerce for industry and security.

The Biden administration is believed to be weighing the option to bolster America’s economic security. “But this is going to be such a polarizing topic for the industry,” Nikakhtar said, pointing to growing interest in investing in China by financial firms and other foreign companies.

What You Will Do

Nikakhtar outlined three potential scenarios for the U.S. moving forward: maintain the current Section 301 tariffs on intellectual property theft, maintain the Section 301 tariffs and potentially add new ones to address industrial subsidies, or abandon the Section 301 tariffs for IP theft in favor of new ones to address industrial subsidies.

Responsibilities

Meanwhile, Chinese President Xi Jinping has urged the U.S. to scrap sanctions targeting Chinese high-tech companies. The Biden administration will likely find it “very hard” to ignore calls to ramp up pressure on China, Nikakhtar predicted.

• I would think right now that all options would be on the table
• Meanwhile, Chinese President Xi Jinping has urged the U.S. to scrap sanctions targeting
• If Congress is getting frustrated that things aren’t being done quickly enough

1. I would think right now that all options would be on the table
2. As a practical, realistic matter, you can’t have every country have the exact same
3. But I think other countries will have no choice but to do the same

How to Apply

Nikakhtar outlined three potential scenarios for the U.S. moving forward: maintain the current Section 301 tariffs on intellectual property theft, maintain the Section 301 tariffs and potentially add new ones to address industrial subsidies, or abandon the Section 301 tariffs for IP theft in favor of new ones to address industrial subsidies.