Both the EU and U.S. want to improve trade and investment policy coordination in the context of the growing China challenge and now the Russian invasion of Ukraine. But the second meeting of the EU-U.S. Trade and Technology Council (TTC) in Paris in May showed no sign of progress on measures to curb China’s state capitalism. At TTC’s launch last September the parties agreed to develop “harmonious domestic measures” to curb foreign subsidies that distort competition in trade, investment and government procurement. The EU has several measures in the works, but the U.S. is lagging behind. For example, the EU is close to approving a Foreign Subsidies Instrument (“FSI”) to create mandato
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