Trump directs the CFIUS to limit Chinese investments in key sectors

The White House official claimed that President Donald Trump issued a memorandum on Friday instructing the Committee on Foreign Investment in the United States to limit Chinese investments in vital areas.

The goal of the national security memorandum, according to the official, is to encourage international investment while safeguarding American national security interests against dangers from enemies such as China.

According to the official, China is “exploiting our capital and ingenuity to fund and modernize their military, intelligence, and security operations, posing direct threats to United States security,” which is an order requirement.

The person stated that as part of the order, the United States would create new regulations “to curb the exploitation of its capital, technology, and knowledge by foreign adversaries such as China to ensure that only those investments that serve American interests are allowed,”

Additionally, according to the official, the Trump administration would think about imposing new or more stringent regulations on American outbound investment in China in critical fields including semiconductors, AI, quantum, biotechnology, aerospace, and more.

In a statement released on Saturday, China’s commerce ministry recommended that the United States refrain from “politicizing” and “weaponizing” economic matters. The ministry also stated that China will keep a close eye on the situation and take the appropriate action to protect its legitimate rights and interests.

As one of his first actions as president, the Trump raised taxes on Chinese imports, and the actions now threaten to escalate economic tensions with China.

Chinese investment in the US has already drastically decreased, according to CFIUS, which examines foreign investment in the US for national security threats.

By 2022, the Rhodium Group estimates that Chinese investment will have decreased from $46 billion in 2016 to less than $5 billion.

Approximately 43 million acres of U.S. agricultural property, or approximately 2% of all U.S. land, are owned by foreign corporations and people, according to the directive, the source said.

The official stated that China has about 350,000 acres of agriculture in 27 states.

Concerns about foreign and investor property purchases raising agricultural prices and endangering national security have been voiced by politicians and farm organizations in recent years.

Chinese hackers have often attacked American organizations, the White House official added, including the recent theft of the Treasury Department’s CFIUS division, which is in charge of assessing foreign investments for national security threats.

An executive order issued by the Biden administration in 2023 that forbade some U.S. investments in critical technology in China and required government notice of other investments might be expanded upon by the outbound regime.