America First Investment Policy and Economic Security

Investment plays a key role in strengthening the United States' economy and national security. By welcoming foreign investments and further enhancing both the private and public capital markets, America can position itself for a prosperous future, often referred to as America’s Golden Age. The United States has some of the world’s most attractive assets in industries such as technology, agriculture, and natural resources. These assets not only have the potential to create new jobs but also contribute to innovation and economic growth, benefiting the entire nation. The goal is to make it easier for America’s overseas allies and partners to support U.S. businesses, job creation, and technological advancement with their investment capital.  The Role of Foreign Investment  Investment by foreign allies and partners can create thousands of jobs, leading to significant wealth for the United States. As the world’s largest and most powerful economy, the U.S. is committed to maintaining a strong and open investment environment that fosters economic growth. This open market benefits both the economy and citizens, while also enhancing the country’s ability to protect itself from evolving threats linked to foreign investment.  While foreign investment can be beneficial, it must be approached with caution, especially when it comes to certain adversarial countries. For example, the People’s Republic of China (PRC) systematically directs its investments to gain access to advanced technologies, intellectual property, and influence over strategic industries. The PRC’s approach to investment is not always transparent; it uses both direct investments and indirect methods through partner companies and investment funds located in third countries.  

Economic Security Equals National Security  

It is important to understand that economic security is inseparable from national security. Just as the PRC does not allow U.S. companies to invest in its critical infrastructure, the United States must also protect its own critical infrastructure. Investments from foreign adversaries, such as the PRC, in critical areas like technology, energy, agriculture, and natural resources must be scrutinized to ensure that they do not compromise national security. These adversarial investments can be harmful because they provide the PRC with access to vital sectors that could eventually be used to strengthen its military and intelligence apparatus.  The PRC’s use of investments to fund the development of dual-use technologies technologies that have both civilian and military applications poses an especially significant risk. Through its Military-Civil Fusion strategy, China is merging civilian and military sectors to bolster its military-industrial complex. This includes the development of weapons of mass destruction, advanced conventional weapons, and even cyberattacks against U.S. interests.  Protecting U.S. Interests from Harmful Investments  The United States will continue to embrace foreign investment but will implement measures to ensure that investments from adversarial nations do not harm national security. The policy will allow investments in key sectors only from countries that do not engage in predatory practices such as technology theft or espionage. Specifically, the United States will create a fast-track process to expedite investments from trusted allies and partners, particularly in the areas of advanced technology.  Additionally, strict measures will be put in place to protect sensitive industries from being undermined by adversarial investments. The Committee on Foreign Investment in the United States (CFIUS) will play an important role in blocking harmful investments, particularly from the PRC, in sectors related to technology, infrastructure, and defense. The United States will work to strengthen CFIUS’s authority over new types of foreign investments and ensure that all national security risks are addressed.  Reducing Uncertainty and Promoting Secure Investments  To foster a more stable and predictable environment for investors, the U.S. administration will aim to reduce administrative burdens, eliminate overly complex mitigation agreements, and ensure that foreign investment practices align with U.S. national interests. There will also be a special focus on passive investments those that do not give foreign entities decision-making power over U.S. companies to ensure that these investments do not put national security at risk. At the same time, foreign investments that serve to advance the development of U.S. technologies will be encouraged, provided they are made by countries that respect U.S. security concerns.  In line with this, the United States will take steps to ensure that U.S. investors are not unwittingly contributing to the advancement of foreign adversary military-industrial sectors. By restricting investments that contribute to the PRC’s Military-Civil Fusion strategy, the U.S. will prevent its capital from aiding the development of adversarial military technologies. U.S. investment in critical technologies like semiconductors, artificial intelligence, and biotechnology will be closely monitored to prevent the transfer of sensitive knowledge to foreign military sectors.  

Ensuring the Safety of U.S. Investments  

To protect the savings of American investors and to ensure that their capital contributes to U.S. prosperity, the administration will work to maintain strict auditing standards and fiduciary responsibilities for U.S. pension plans. Foreign adversary companies should not be eligible for U.S. pension fund contributions, as this could indirectly support the military goals of adversarial nations. Measures will also be put in place to examine the financial transparency of companies trading on U.S. exchanges and prevent fraudulent behavior by foreign adversary companies.  Strengthening the Relationship with Allies and Partners  While the United States will take a firm stance against harmful foreign investments, it will continue to encourage and welcome investments from its allies and trusted partners. These relationships are critical to ensuring the security and continued growth of the U.S. economy. By investing in advanced technologies, the U.S. will remain at the forefront of global innovation and competitiveness. The cooperation with allied nations will also help the U.S. maintain its global leadership, promote economic stability, and ensure that the right types of investments are supporting American industries and workers. America’s investment policy must balance openness with vigilance. By fostering an open and secure investment environment, the United States can maintain its leadership in technology, create jobs, and drive economic growth, while also safeguarding national security. Foreign investment from trusted allies and partners will continue to play a critical role in strengthening the U.S. economy, but strategic measures must be in place to prevent adversarial nations from using investments to undermine U.S. interests. With careful management and oversight, the U.S. can ensure that foreign investments contribute positively to its future and national security.