The recent signing of the \"America First Investment Policy\" memo by US President Donald Trump marks a significant shift in the United States' approach towards China. This comprehensive policy package is designed to deter, suppress, and encircle China across various economic and strategic domains.
Unlike the previously referenced \"small yards and high fences\" strategy, the new memo presents a systemic and all-encompassing measure aimed at curbing China's influence. The policy includes stringent restrictions on Chinese investments, particularly in areas deemed critical to US national interests.
Key provisions of the memo prohibit China from making direct or indirect investments to acquire cutting-edge technologies, intellectual property, or significant stakes in strategic industries. Additionally, the policy blocks Chinese investments in core US assets such as technology firms, food supplies, farmland, minerals, and ports. It also restricts China's ability to raise capital in the US through securities issuance, US index investments, and funds dedicated to developing military, intelligence, and other security apparatuses.
This move comes at a time when major Chinese A-shares have been included in prominent indices like MSCI and Dow Jones. The US authorities are now poised to reassess these financial collaborations, signaling a tightened grip on economic interactions between the two nations.
Furthermore, the memo explicitly bans Chinese investments in critical US technologies, infrastructure, personal data repositories, and other sensitive sectors. It also imposes stricter scrutiny on countries cooperating with China, aiming to limit China's access to US capital, technology, and expertise for the benefit of the United States.
In addition to investment restrictions, the memo proposes the suspension or termination of reciprocal agreements between China and the US, including those related to taxation. This comprehensive approach underscores the United States' intent to recalibrate its economic and strategic relationship with China, reflecting growing concerns over national security and economic competition.
The implementation of the \"America First Investment Policy\" is expected to have far-reaching implications for China, potentially reshaping the landscape of Sino-US economic relations and prompting China to navigate a more constrained international investment environment.
Reference(s):
cgtn.com
