The US President Donald Trump has signed a memorandum on the “America First Investment Policy” on 21 February 2025.
The policy seeks to boost foreign investment in the US to create jobs and grow the economy, especially from allies, while protecting critical infrastructure and technology from foreign adversaries like China.
The memorandum states that China is increasingly using US capital to strengthen its military, intelligence, and security systems, posing significant risks to the US homeland and Armed Forces worldwide. This includes developing dual-use technologies, weapons of mass destruction, advanced conventional weapons, and conducting malicious cyberattacks against the US. Through its Military-Civil Fusion strategy, China is expanding its military-industrial complex by requiring civilian companies and research institutions to support military and intelligence efforts.
Chinese companies are also raising capital by selling securities to American investors on US and foreign exchanges, lobbying US index providers to include these securities, and taking other steps to access US capital. In doing so, China uses US investors to fund and modernize its military.
It also includes a review of the 1984 China-US tax treaty for possible suspension or termination to discourage US investments in China.
