President Donald Trump's latest move to limit China's investment in strategic areas shows that the president may be more aggressive than ever before against his US rivals in his second term.
“The institutions and regulatory measures needed to implement the policy will take time, but Trump 2.0 is taking a more hawk approach to China, as he did in his first semester.” Larry Ward, current partner at international law firm Dorsey & Whitney, told Fox News Digital.
Comments include Trump's Foreign Investment Committee last week, which aimed to restrict investment from enemies such as China, while promoting foreign investment from China, and protecting US national security interests. This will come after you have signed the memorandum of understanding that you directed to (CFIU).
“The Committee on Foreign Investment in the US (CFIU) will be used to limit Chinese investment in the strategic US sector, including technology, critical infrastructure, healthcare, agriculture, energy, raw materials,” reads a fact sheet about the memorandum released by the White House last week.
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President Donald Trump and President Xi Jinping (Getty)
The Memorandum of Understanding of the National Security President (NSPM) specifically uses our capital and ingenuity to fund, modernize and modernize military, intelligence agency and security activities, and weapons of mass destruction. poses a direct threat to safety, and directly threatens mass destruction, according to the White House release, such as cyber warfare.
“Chinese hackers have repeatedly targeted US entities, including recent violations of the Treasury Department's CFIUS office.
Trump had imposed tariffs on China in the past, but Ward argued that the president's new policies were another step towards aggressively responding to the threat posed by China.
“This is very different to tariffs, not trade concerns. Foreign investment is an issue that can affect national security,” Ward said.
Ward took note of the example of Tiktok in social media applications. This is notoriously central to the debate about protecting Americans from potentially targeting China.
President Donald Trump (Melina Mara – Pool/Getty Images)
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“Tiktok was initially underwent a CPA process and was investigated on a national security basis, and then the determination was made that there were national security concerns,” Ward said.
Ward said China's investment in certain sectors has faced restrictions for many years, but Trump's move could potentially extend such restrictions beyond what investors have traditionally seen It has made it clear that it is highly proficiency.
“So, when you look at sectors like semiconductors, the AI space becomes an increasingly common focus, the technology sector,” Ward said. “But certainly this policy comes forward again. Yes, certainly when it comes to those sensitive industrial sectors, it will be very strict when it comes to China's investment, but will expand to other industrial sectors as well. I'm planning on it. It may not have been kind of front and center for the past five or ten years.”
In response to Trump's move, China's Commerce Department accused the US of “politicizing” and “weaponizing” economic issues, adding that it will continue to monitor the situation closely to protect its interests, according to a Reuters report.
Xi Jinping will arrive for dinner at the Elysee Palace in Paris on May 6, 2024. (via Daniel Dorko/Hans Lucas/AFP Getty Images))
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Nevertheless, Ward believes Trump's memorandum shows that the president is more committed than ever to combating China's threat to US security.
“The biggest thing about this policy is that President Trump is not afraid to say that the threat here is China,” Ward said. “Everyone knows that such work in this space, but it was the elephant in the room, right? China's concerns.”
