President Donald Trump has signed a memorandum directing the Committee on Foreign Investment in the United States (CFIUS) to tighten restrictions on Chinese investments in critical industries. This order, aimed at balancing foreign investment with national security, underscores growing concerns over China’s influence in key American sectors.
According to a White House official, the order highlights how China has been “exploiting our capital and ingenuity to fund and modernize their military, intelligence, and security operations, posing direct threats to United States security.”
The directive seeks to curb this exploitation by ensuring that only investments beneficial to American interests are permitted.
Additionally, the administration is considering further restrictions on U.S. investments in China, particularly in sensitive fields such as semiconductors, artificial intelligence, quantum computing, biotechnology, and aerospace. These measures align with broader efforts to protect cutting-edge technologies from foreign adversaries.
The Chinese Ministry of Commerce swiftly condemned the move, accusing the U.S. of “politicizing” and “weaponizing” economic issues. In a statement, Chinese officials said they would closely monitor the situation and take necessary steps to protect their legitimate interests.
This latest action is expected to further strain U.S.-China economic relations, already tense due to the imposition of tariffs on Chinese imports early in Trump’s presidency.
Meanwhile, CFIUS has overseen a dramatic decline in Chinese investments in the U.S., which plummeted from $46 billion in 2016 to under $5 billion in 2022, according to data from the Rhodium Group.
Another key aspect of the memorandum focuses on foreign ownership of U.S. agricultural land. The order noted that foreign entities and individuals own approximately 43 million acres of farmland—nearly 2% of all U.S. land.
Specifically, China owns over 350,000 acres across 27 states. Lawmakers and farm groups have raised concerns that foreign purchases are driving up land prices and could pose security risks.
The White House official also pointed to repeated cyberattacks by Chinese hackers targeting U.S. entities. Most notably, hackers recently breached the Treasury Department’s CFIUS office, which is responsible for reviewing foreign investments for national security threats.
This further solidifies concerns about China’s aggressive efforts to access American economic and technological resources.
Trump’s memorandum sets the stage for continued U.S. scrutiny of China’s economic influence. In 2023, the Biden administration introduced an executive order restricting U.S. investments in sensitive Chinese technologies and requiring government notification of certain financial dealings.
The current discussions suggest an expansion of these measures, reinforcing a bipartisan consensus on the need for stricter oversight of China’s economic activities in the U.S.