Trump Aims to Balance Foreign Investment and Security

President Donald Trump signed a memorandum directing the Committee on Foreign Investment in the United States (CFIUS) to impose tighter restrictions on Chinese investments in strategic US sectors, such as technology and critical infrastructure. This move aims to promote foreign investment while safeguarding US national security from perceived threats posed by foreign adversaries, particularly China, which is accused of exploiting US capital to bolster its military and intelligence capabilities. The directive also considers new restrictions on US outbound investments to China in sensitive technologies like semiconductors and artificial intelligence. This decision is poised to escalate trade tensions between the US and China, following the imposition of additional tariffs on Chinese imports. CFIUS, known for assessing the national security risks of foreign investments, has already overseen a significant decline in Chinese investments in the US, from $46 billion in 2016 to under $5 billion by 2022. The memorandum emphasizes curbing the exploitation of American resources and technology by foreign adversaries to ensure investments align with US interests.