Trump's New Economic Guardrails: Curbing Chinese Investments to Protect National Interests

President Donald Trump signed a memorandum directing restrictions on Chinese investments in strategic U.S. areas to safeguard national security. The directive aims to counter perceived threats from China and considers tighter regulations on U.S. outbound investments in sensitive technologies like AI and semiconductors.

In a significant move to protect national interests, President Donald Trump has signed a memorandum to curb Chinese investments in strategic sectors of the United States, a White House official announced Friday. The memorandum underscores the administration's goal of promoting beneficial foreign investments while shielding the nation from threats posed by adversaries like China.

The directive took aim at what it described as China's exploitation of American capital for advancing its military and cybersecurity operations, a direct threat to U.S. security. It mandates new rules to limit foreign entities from leveraging American technology and know-how unless they align with U.S. interests.

Additionally, the Trump administration is contemplating further restrictions on U.S. investments in China's sensitive technologies, including semiconductor and artificial intelligence sectors. This action comes amid intensified economic tension, exemplified by increased tariffs on Chinese goods and dwindling Chinese investments in the U.S., dropping significantly since 2016.

(With inputs from agencies.)