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U.S. Investment Policy in an Evolving World
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U.S. Investment Policy in an Evolving World
Annotation
PII
S268667300010629-1-
DOI
10.31857/S268667300010629-1
Publication type
Article
Status
Published
Authors
Margarita Perova 
ORCID: 0000-0002-9698-5910
Affiliation: Primakov National Research Institute of World Economy and International Relations, RAS
Address: Russian Federation, Moscow
Edition
Issue 8
Pages
70-86
Abstract

The present paper focuses on the important evolution occurring in the U.S. investment policy conducted abroad. This transformation is to respond China’s growing economic influence in developing countries and aims to support U.S. business in competing for overseas investment opportunities.

The study of this issue implies the analysis of the main components of the U.S. approach to outward foreign investment and special features of investment regulations contained in the Better Utilization of Investments Leading to Development Act of 2018 (BUILD Act).

Today a zone of US rivalry with China has become Africa. Over the last 10 years U.S. investment and two-way trade has fallen on the African continent. On the contrary, China is one of the largest foreign direct investors here. But this country’ role is mainly determined by the financing of more, largely critical, infrastructure projects. China has devoted considerable state-directed financing to projects in African countries. However, the result of this China's development policy often becomes “debt traps,” or China’s banks take ownership of the key strategic assets they built.

The adopted law should to complement U.S. assistance development objectives and to contribute to the realization of US foreign policy interests. The BUILD Act creates more robust and flexible investment tools for US companies to use, provides technical assistance and increased oversight on development projects. Created International Development Finance Corporation will more than double the amount of money available for US investment in low- and middle-income countries than was previously.

Keywords
U.S. investment policy abroad, developing countries, China’s growing influence, Africa, law “Better Utilization of Investments Leading to Development Act", development finance, equity investment
Received
15.06.2020
Date of publication
31.07.2020
Number of purchasers
32
Views
4526
Readers community rating
0.0 (0 votes)
Previous versions
S268667300010629-1-1 Дата внесения правок в статью - 24.07.2020
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References

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