In a significant move towards reshaping the United States’ investment landscape, President of the United States released a memorandum directing a new America First Investment Policy aimed at bolstering national and economic security while maintaining an open investment environment.
The memorandum emphasizes the importance of welcoming foreign investment, particularly from allies and partners, while simultaneously safeguarding critical technologies and infrastructure from adversarial entities, notably the People’s Republic of China (PRC).
The President asserted that foreign investment can create hundreds of thousands of jobs and foster economic growth, reinforcing the notion that investment policies must prioritize the interests of American workers and enterprises.
However, the memorandum also expresses apprehension regarding investments from certain foreign adversaries, particularly focusing on the PRC’s systematic efforts to acquire cutting-edge technology and gain leverage in vital industries.
Economic security is framed as national security, as the memorandum discusses how the PRC restricts foreign companies from controlling critical infrastructure while simultaneously targeting essential American assets, including technology, food supplies, and natural resources.
Moreover, the memorandum identifies the direct threat posed by PRC-affiliated investments to U.S. military operations and homeland security, emphasizing the risk associated with the PRC’s Military-Civil Fusion strategy, which compels civilian companies to support military initiatives.
In light of these concerns, the President’s policy outlines several key objectives:
Firstly, it aims to preserve an open investment environment that facilitates the development of advanced technologies like artificial intelligence within the United States, enabling the country to remain a global leader in innovation.
It also emphasizes creating an expedited fast-track process for foreign investments from designated allied sources in sectors of advanced technology and critical infrastructure.
The memorandum highlights the necessity for restrictions on foreign investors’ access to sensitive American assets based on their credible distance from the predatory practices of adversaries like the PRC.
Furthermore, the U.S. will focus on expediting environmental reviews for investments exceeding $1 billion, ensuring that greater capital can flow into the economy swiftly while still adhering to required environmental standards.
In addition, the memorandum establishes a clear stance against the exploitation of U.S. capital and technology by foreign adversaries by implementing new regulations to prevent investments that contribute to the PRC’s Military-Civil Fusion strategy.
The policy intends to deploy all necessary legal instruments, including the Committee on Foreign Investment in the United States (CFIUS), to restrict PRC-affiliated individuals from engaging in investments in vital sectors such as technology, healthcare, and energy.
Provisions are also made to enhance protective measures for U.S. farmland and assets near sensitive facilities, with plans to increase CFIUS authority over new investments from adversarial countries.
Further, the memorandum notes a commitment to reduce uncertainties for investors by streamlining the process and avoiding cumbersome mitigation agreements that burden American companies with indefinite compliance obligations.
The policy also emphasizes the importance of passive investments from foreign individuals, specifying that non-controlling investments will not impose governance or managerial influence on American companies, thereby allowing U.S. businesses to benefit from foreign capital while ensuring national security is upheld.
The memorandum reiterates the administration’s intent to deter U.S. investors from financing the PRC’s military-industrial sector.
It highlights potential sanctions under the International Emergency Economic Powers Act, as well as reviewing avenues to impose restrictions on investments across advanced sectors such as semiconductors, artificial intelligence, and biotechnology.
Citing the detrimental effects of previous international agreements, the memorandum suggests a review of the 1984 U.S.-China Income Tax Convention and its implications on American industries.
Recommendations call for the exploration of measures to revoke or adjust these treaties, aligning them with national interests and reversing the trends of deindustrialization and technology transfer to the PRC.
Moreover, the administration emphasizes the need to protect American investors’ interests more rigorously, evaluating financial auditing standards and oversight for foreign companies listed on U.S. exchanges.
The memorandum concludes with clear directives for implementation, designating responsibilities to various Cabinet members and agency heads to oversee and facilitate the outlined policies.
These include engaging with the Securities and Exchange Commission and the Public Company Accounting Oversight Board, along with the Attorney General and the Federal Bureau of Investigation to assess risks concerning foreign adversarial investments.
Ultimately, the memorandum sets out to ensure a strategic, coherent approach to foreign investment in the U.S., underlining a commitment to economic growth while prioritizing national security standards and the interests of American workers.
As the administration continues to navigate the complexities of global investment, this investment policy marks a pivotal turning point in redefining the relationship between American economic interests and foreign investment dynamics.
image source from：https://www.whitehouse.gov/presidential-actions/2025/02/america-first-investment-policy/
