From Trade War to Investment War: Trump’s Latest Moves to Contain China’s Economic Influence

On February 21, 2025, President Donald J. Trump issued a National Security Presidential Memorandum (NSPM) designed to encourage foreign investment while imposing strict national security protections against adversarial nations, particularly China. The NSPM aims to restrict Chinese investments in strategic U.S. sectors while facilitating investments from allied nations through a fast-track approval process. It also strengthens outbound investment restrictions to prevent U.S. financial and technological resources from supporting China’s industrial and military ambitions.

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