The United States has taken a significant step in shaping its economic landscape with the recent signing of the \"America First Investment Policy\" memo by President Donald Trump. This comprehensive policy package aims to deter, suppress, and encircle Chinese investments across various sectors.
Unlike the previously cited \"small yards and high fences\" approach, this new policy represents a systemic and wide-ranging measure against Chinese economic activities. Key elements of the memo include:
- Preventing Chinese direct or indirect investments in acquiring cutting-edge technologies, intellectual property, and leverage in strategic industries.
- Blocking Chinese investments in core US assets such as technology, food supplies, farmland, minerals, and ports.
- Restricting China's ability to raise capital in the US through securities issuance, index investments, and funds, particularly those aimed at developing military, intelligence, and other security apparatuses.
In recent years, major Chinese A-shares have been included in significant indices like MSCI and Dow Jones. However, US authorities are now reassessing these financial collaborations in light of the new policy.
The memo also explicitly prohibits Chinese investments in critical US technology, infrastructure, personal data, and other sensitive areas. Additionally, stricter scrutiny will be imposed on countries cooperating with China to limit its access to US capital, technology, and expertise.
Furthermore, the policy proposes suspending or terminating reciprocal agreements between China and the US, including those related to taxation.
These measures signify a profound shift in the US approach towards economic interactions with China, likely impacting bilateral relations and global economic dynamics moving forward.
Reference(s):
cgtn.com
