Transatlantic Investment Controls

In the evolving paradigm of economic security, there is a clear shift away from the previous emphasis on free trade and globalization on both sides of the Atlantic. This restructuring is underpinned by a growing awareness of the imperative to navigate the intersection of technology and national security, particularly in light of China’s rise on the global stage and concerns about “weaponized interdependence”. The United States and the European Union, recognizing the strategic importance of addressing this nexus, are actively shaping and implementing novel export and investment controls designed to curtail economic activities viewed as potential threats to national security. While a shared objective exists in preventing Western technologies from inadvertently contributing to China’s military or surveillance capabilities, divergent transatlantic perspectives on the extent of these restrictions persist between Washington and Brussels – and within the EU itself between Brussels and member state capitals. Consequently, fostering transatlantic coordination becomes imperative to align interests and establish common approaches, even in the face of divergent legal frameworks, tools, and strategic priorities. This brief paper offers a concise overview of the primary U.S. and EU strategies and approaches regarding export and investment controls, the current role of transatlantic coordination, and the key issues and challenges that demand attention moving forward.