![]() Moving too aggressively could agitate China hawks on either side of the aisle. influence over Chinese companies - “they’re not going to spend a lot of political capital defending investment in China,” one lobbyist said. While they’re happy to talk about the potential unintended consequences - including, as House Financial Services Chair Patrick McHenry (R-N.C.) has argued, further diminishing U.S. investment in China slowed amid mounting tensions between the two governments, the pending order has alarmed investors - including California State Teachers’ Retirement System CIO Christopher Ailman - who are wary of their capital getting stuck in a geopolitical limbo.įor now, many Wall Street lobbyists are taking a wait-and-see approach before publicly airing their concerns. Major private equity firms like General Atlantic, Blackstone Group and Warburg Pincus raised billions from state retirement systems and endowments to invest in Chinese companies during the previous decade.Īnd while U.S. That’s particularly true for buyout and venture capital firms whose investments in private companies are much harder to sell than a stock or a bond. The order could be vexing for certain firms if it’s broadly contoured to “amorphous categories rather than specific examples.” ![]() I could see this being dangerous if it’s these amorphous categories rather than specific examples,” Daniel Tannebaum, a partner and global anti-financial crime practice leader at management consulting firm Oliver Wyman, told MM. “Until they come out with the specific guidance, it’s going to be difficult to understand what’s covered by this. financing for Chinese advanced microchips, artificial intelligence and quantum computing. They have already said the final product will allow American regulators to review and deny U.S. Wall Street will be watching closely for any indication of where things stand on President Joe Biden’s widely anticipated executive order on outbound investments.Īdministration officials have been fine tuning the order for months. ![]() ![]() Treasury Secretary Janet Yellen kicks off her trip to China this week. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day’s biggest stories. Morning Money is a free version of POLITICO Pro Financial Services morning newsletter, which is delivered to our subscribers each morning at 5:15 a.m. ![]()
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