US, EU Should Work Together on Outbound Investment Rules, Researcher Says
With the United States and the EU both preparing to increase their scrutiny of outbound investment, the two parties should closely coordinate their efforts to achieve the best possible outcome, a Germany-based researcher said Oct. 22.
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While the U.S. Treasury Department in July published a proposed rule that would impose new prohibitions and notification requirements on outbound investment in China’s artificial intelligence, quantum and semiconductor sectors (see 2407030009), the EU is having “a lot of ongoing discussions” about how to adopt its own regulations, said Philip Nock, research fellow at the University of Bonn’s Center for Advanced Security, Strategic and Integration Studies.
Nock’s comments to the Washington, D.C.-based American-German Institute echo those of a Treasury official who said in July that the Biden administration was trying to persuade American allies to adopt outbound investment restrictions similar to the ones the U.S. is pursuing (see 2407250037).
Nock also called for the U.S. and Germany to harmonize their computing chip export restrictions as much as possible. Having more common rules would make it easier for the private sector to “engage in business activities across the pond.” In their current form, U.S. controls are “further developed” than Germany’s, but the Biden administration has been successful in persuading its European allies to adopt more restrictions, he said.
While the U.S.-EU Trade and Technology Council enjoys broad trans-Atlantic support for its role in coordinating trade and technology policy (see 2404040034), its future is uncertain in a possible second Trump administration, which would be expected to prefer a unilateral approach, Nock said. Vice President Kamala Harris’ views on chip policy are unclear, but she would be expected to largely continue the policies of the Biden administration, he said.