The Trump Administration has unveiled the America First Investment Policy, a memorandum aimed at maintaining an open investment climate for U.S. allies and partners, while instituting stringent measures to safeguard U.S. interests against evolving threats posed by foreign adversaries. The policy serves to cement the Administration´s commitment to isolating identified adversaries—such as the People’s Republic of China (including Hong Kong and Macau), Russia, Iran, North Korea, Cuba, and Venezuela—while strengthening leadership in key strategic sectors, including artificial intelligence and emerging technologies.
This latest initiative builds upon prior executive actions that restricted outbound U.S. investment in sensitive technologies destined for nations of concern, notably following the Biden Administration’s Executive Order 14105 and subsequent regulations targeting investments linked to China and affiliated regions. The America First Investment Policy significantly expands the scope and enforcement of the Outbound Investment Security Program, further intensifying restrictions on investments associated with foreign adversaries and introducing streamlined, pro-investment processes for entities from allied nations. Key strategies include creating a ‘fast-track’ review process and loosening limitations for investors from countries with clear disassociation from adversarial entities, while increasing obstacles for PRC-affiliated investors in sectors such as critical infrastructure and advanced manufacturing.
The memorandum details a range of regulatory tools, from reducing bureaucratic mitigation agreements for allied investments to implementing or considering new outbound investment bans in areas implicated by China’s Military-Civil Fusion strategy—such as semiconductors, quantum computing, biotechnology, and advanced aerospace. It also outlines reviews of financial auditing standards for foreign companies and the potential suspension of longstanding tax agreements with China. The policy´s implementation will be overseen by a coalition of federal agencies and regulators, including the Treasury, the Environmental Protection Agency, the Securities and Exchange Commission, and the Public Company Accounting Oversight Board. While some provisions will require Congressional action, others—such as expedited reviews for allied investment—can be immediately enacted, potentially lowering costs and reducing approval timelines for partner nations. The policy underscores an ongoing reevaluation of U.S. foreign investment rules in the face of mounting global strategic competition.
