The White House has announced a new “America First Investment Policy,” outlining a comprehensive strategy to attract foreign investments from allied nations while curbing economic influence from foreign adversaries, particularly China. The directive, issued by the President, touches on artificial intelligence (AI) while emphasizing national security concerns tied to foreign investments and establishes new regulations to prevent adversarial nations from acquiring critical American assets and technology.
The policy highlights the United States’ commitment to maintaining an open investment environment, ensuring that advanced technologies such as AI are developed domestically. It aims to strengthen partnerships with allies while introducing safeguards against investments that could threaten U.S. economic and national security.
The memorandum directly addresses the risk posed by China’s investment strategies, particularly its efforts to acquire U.S. intellectual property, technological advancements, and strategic industries. It accuses China of leveraging U.S. capital markets to fund its military and intelligence sectors, further advancing its “Military-Civil Fusion” strategy.
To counter these threats, the administration will use the Committee on Foreign Investment in the United States (CFIUS) to restrict investments from Chinese-affiliated entities in critical sectors such as technology, infrastructure, healthcare, agriculture, and energy. The policy also extends to preventing China from purchasing U.S. farmland and real estate near sensitive locations.
The policy further seeks to prevent U.S. investors from financing China’s military-industrial sector. It includes a review of existing regulations under past executive orders and considers imposing additional restrictions on outbound investments in industries such as semiconductors, biotechnology, and aerospace.
While tightening controls on adversarial investments, the U.S. will introduce a “fast-track” approval process to encourage investments from allied nations. This initiative will streamline regulatory approvals for foreign investments exceeding $1 billion and reduce bureaucratic delays for trusted partners investing in U.S. technology and infrastructure.
Additionally, the administration plans to reevaluate its tax policies, potentially suspending or terminating the 1984 U.S.-China Income Tax Treaty. This move is intended to further limit China’s economic leverage while incentivizing investments that directly benefit the U.S. economy.
The policy includes measures to ensure that foreign passive investments—such as non-controlling stakes in U.S. companies—remain unrestricted. By doing so, the administration seeks to sustain economic growth while protecting critical infrastructure and emerging technologies.
Furthermore, the administration will work to reinforce financial auditing standards for foreign companies listed on U.S. stock exchanges. This includes scrutinizing investment structures used by Chinese firms to ensure transparency and protect U.S. investors from potential financial fraud.
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