Brandon Van Grack spoke to Foreign Investment Watch about a survey of readers at U.S. investment firms that showed nearly half of U.S. institutional investors weren't aware of the potential for outbound investment reviews.
According to Brandon, there's a lot of political noise in the marketplace that confuses market participants. "I don't think the lack of awareness is a surprise because the rise of anti-Chinese government rhetoric from the U.S. government in recent years means it can be challenging to determine what is likely and real," he said.
Brandon believes respondents are underestimating the impact of a political outbound regime. "I predict it will be far more onerous and consequential than your numbers suggest," he said, adding that some of the lack of concern may be related to the fact that the currently contemplated regulations are limited in scope. "But once the U.S. government opens a regulatory door, it never closes it, and soon finds an excuse to open it further."
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Originally published by Foreign Investment Watch
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