President Donald Trump has directed the Committee on Foreign Investment in the United States (CFIUS) to impose stricter restrictions on Chinese investment in key American industries, marking a significant escalation in U.S. economic policy toward China.
In a national security presidential memorandum signed Friday, Trump pledged to use “all necessary legal instruments” to prevent Chinese-affiliated entities from investing in critical sectors, including technology, infrastructure, agriculture, energy, and raw materials. The directive is part of a broader strategy to curb what the administration views as Beijing’s attempts to gain control over strategic U.S. assets.
“The PRC does not allow United States companies to take over their critical infrastructure, and the United States should not allow the PRC to take over United States critical infrastructure,” Trump stated in the memo. He warned that Chinese investors were targeting key areas such as U.S. technology, food supplies, minerals, ports, and shipping terminals.
Trump’s order expands the authority of CFIUS, a multi-agency panel responsible for reviewing foreign transactions that could pose security risks. Under the new guidelines, Chinese firms seeking ownership or influence over American businesses will face greater scrutiny, particularly in areas such as artificial intelligence, semiconductor manufacturing, quantum computing, and aerospace technology.
One of the key provisions of the directive is the restriction on Chinese investment in U.S. farmland and real estate near sensitive military installations. Lawmakers and security officials have raised alarms over foreign entities acquiring large tracts of agricultural land, warning of potential risks to food supply chains and military operations.
The concern is not unfounded—last year, U.S. authorities ordered a Chinese cryptocurrency mining company to divest from land it had purchased near an Air Force base in Wyoming, home to intercontinental ballistic missiles. Trump’s order builds on such measures, reinforcing the government’s commitment to keeping strategic assets out of foreign hands.
Beyond direct investment, the administration is also moving to restrict China’s financial foothold in American markets. The directive includes provisions for stricter auditing of foreign companies listed on U.S. stock exchanges and prohibits pension funds from investing in firms linked to foreign adversaries.
While the directive imposes tougher restrictions on China, it also introduces measures to encourage investment from allied nations. Trump announced plans to implement a “fast-track” approval process for businesses from friendly countries, making it easier for them to invest in U.S. projects. Additionally, environmental reviews for investments exceeding $1 billion will be expedited to attract more capital from trusted global partners.
