On Friday, US President Donald Trump signed a document urging a foreign investment review panel to impose limitations on Chinese investments in vital infrastructure and technology.
The action was taken during a period of increasing trade tensions and strategic rivalry between the two largest economies in the world.
According to the White House, it aims to safeguard US national security interests “particularly from threats posed by foreign adversaries” like China while fostering foreign investment.
In particular, the memo took aim at China for “increasingly exploiting United States capital to develop and modernize its military, intelligence, and other security apparatuses.”
It called for the Committee on Foreign Investment in the United States (CFIUS) to be used to restrict Chinese investments in key US sectors such as technology, critical infrastructure, health care and energy.
CFIUS is a panel that weighs the national security implications of foreign investments in the United States.
“President Trump is keeping his promise to prevent foreign adversaries from taking advantage of the United States,” the White House said.
Trump imposed additional customs tariffs of 10 percent on all products imported from China at the beginning of this month due to the country’s alleged involvement in the deadly fentanyl trade, which prompted Friday’s order.
The charge has been disputed by Beijing.
However, the US president indicated Wednesday that a trade agreement with China was “possible.”
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