The Chinese government reacted by calling the 'America-first investment policy', which aims to limit U.S. investment in China's strategic industries and Chinese investment in the U.S., unreasonable and unmarket-oriented. It then warned that necessary measures would be taken.
A spokesperson for China's Ministry of Commerce stated on the ministry's website on the 22nd that "the U.S. approach generalizes the concept of national security," adding, "it has a discriminatory nature, which is an unmarket-oriented action." Furthermore, he noted that "this has a serious impact on the normal economic and trade cooperation between the two countries," emphasizing that "the U.S. conducting stricter security reviews of Chinese investors will severely damage the confidence of Chinese corporations in investing in the U.S."
He pointed out that the U.S. restriction on investment in China is "very unreasonable," stating that "many U.S. business organizations and corporations will have to concede the Chinese market to other competitors due to the restrictions on investment in China."
He expressed that he "wants the U.S. to provide a fair, transparent, stable, and predictable environment for Chinese corporations' investments in the U.S.," and urged that "China calls for the U.S. to abide by international investment and trade rules and to stop the politicization and weaponization of economic and trade issues." He further emphasized that "China will closely monitor U.S. trends and safeguard its legitimate rights and interests through necessary means."
U.S. President Donald Trump signed a memorandum on the 'America-first investment policy' on the 21st (local time). This memorandum contains provisions to encourage investments from allies in strategic industries while limiting mutual investments between the U.S. and China. President Trump is expected to use legal tools such as the Committee on Foreign Investment in the United States (CFIUS) to restrict investments by Chinese individuals and corporations in U.S. strategic sectors, as well as limit investments by U.S. corporations in Chinese strategic industries.