Governments Spurn Foreign Investment

Officials fret over growth in what US sees as protectionism
By Sam Gale Rosen,  Newser Staff
Posted Jul 6, 2007 12:58 PM CDT
A Chinese man walks past a billboard showing collage of Chinese Yuan and U.S. dollars in Beijing in this Sept, 19, 2005 file photo. Chinese officials on Tuesday May 15, 2007 warned U.S. critics of Beijing's...   (Associated Press)
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(Newser) – Governments all over the globe are increasing restrictions on foreign investments, raising worries in the US that new limits will check international economic growth. The motivations for the newly imposed and impending limits are complex, mixing worries over national security, backlash against rampant globalization, and perhaps a measure of retaliation against US restrictions already in place, the Journal reports.

Global capital movement appears unimpeded, but the fear is that a few countries' restrictions on foreign investments could set off a domino effect, with other nations following suit in an attempt to level the playing field. A US official recently dispatched to Russia and China to lobby against new restrictions says: "Perhaps the greatest challenge is rising investment protectionism."