The Donald Trump administration in the United States has created a new fast track to simplify security review procedures related to investments from allied countries. This is seen as a move to eliminate obstacles to investments in the U.S. and to pressure allied investments. In contrast, investments from China into the U.S. and U.S. investments into China have been decided to be restricted.
President Trump signed a memorandum on the 'America First Investment Policy' on the 21st (local time). The memorandum states, 'We will make it easier for overseas allies to support U.S. jobs, innovators, and economic growth with their capital.'
President Trump has openly expressed his intention to concentrate global investment funds in the U.S. He declared that the allied investment in the U.S. 'is beneficial to national interests,' asserting, 'I will make the U.S. the largest destination for global investment capital.'
The fast track system established by the Trump administration is designed to encourage investments from allied countries in the high-tech strategic industry sector. The fast track simplifies security reviews conducted by the Committee on Foreign Investment in the United States (CFIUS) when allied corporations make investments. CFIUS can review the impact of foreign investments on U.S. national security and demand corrective measures or recommend denial to the president.
However, the memorandum attaches the condition that one cannot collaborate with hostile nation corporations to utilize the fast track. In particular, the extent to which one maintains 'distance and independence' from countries like China will determine the relaxation of investment restrictions.
President Trump identified China, Cuba, Iran, North Korea, Russia, and Venezuela as hostile nations. Among these, investment by China in areas such as U.S. technology, critical infrastructure, healthcare, agriculture, energy, and raw materials is restricted. The memorandum also prevents investments by U.S. corporations in China to hinder the development of the Chinese military-industrial complex. This memorandum will lead to a review of the control of a corporation of hostile nation corporations listed on the U.S. stock market.
The memorandum states, 'Certain hostile nations, including China, systematically direct and promote investments in U.S. corporations and assets to secure cutting-edge technology and intellectual property in strategic industries,' adding, 'China is increasingly utilizing U.S. capital to develop and modernize its military, intelligence agencies, and other security organizations.'