President Donald Trump signed a National Security Presidential Memorandum (NSPM) on Friday, outlining a sweeping new investment policy aimed at bolstering foreign investment in the U.S. while restricting financial ties with adversaries, particularly China. The America First Investment Policy seeks to strengthen U.S. economic growth and innovation while curbing what the administration describes as “predatory investment and technology-acquisition practices” by foreign adversaries.

The policy sets new rules to encourage investments from allied nations while preventing China and other rivals from acquiring U.S. businesses and assets in critical sectors like technology, energy, and agriculture. The memorandum calls for an expedited “fast-track” process to facilitate investments from friendly nations, along with environmental review waivers for investments over $1 billion​.

Cracking down on Chinese investment

A central focus of the policy is limiting Chinese access to U.S. capital and resources. The administration argues that China has exploited American financial markets to modernize its military, intelligence, and cyber capabilities.

“The PRC does not allow U.S. companies to take over their critical infrastructure, and the United States should not allow the PRC to take over ours,” the policy states. It directs agencies to use the Committee on Foreign Investment in the United States (CFIUS) to block Chinese purchases of critical assets, including farmland, technology firms, and strategic infrastructure​.

According to government data, Chinese entities already own over 350,000 acres of U.S. farmland across 27 states. The policy seeks to halt further land acquisitions near sensitive military and government sites.

Tougher oversight of U.S. investments abroad

The policy also targets U.S. investors who fund Chinese industries tied to military development. The administration plans to:

• Expand restrictions on outbound U.S. investments in semiconductors, artificial intelligence, biotechnology, and aerospace.

• Audit foreign companies listed on U.S. stock exchanges to ensure compliance with financial transparency laws.

• Investigate Chinese firms’ ownership structures to prevent hidden government ties and potential fraud.

• Restrict American pension funds and university endowments from investing in Chinese military-linked companies.

The administration also announced a review of the 1984 U.S.-China Income Tax Convention, potentially suspending tax benefits for Chinese investments.

Safeguarding American innovation

Trump’s policy builds on past actions, including tariffs on Chinese goods, restrictions on Chinese technology firms, and investigations into intellectual property theft. The administration asserts that the new measures will prevent adversaries from using American financial and technological resources against U.S. interests.

“We will stop China from buying up America, allowing only investments that serve American interests,” Trump said.

While the policy is expected to strengthen national security protections, it may also increase tensions between Washington and Beijing, with potential economic repercussions. The administration, however, remains firm in its commitment to prioritizing U.S. economic security.