Signal America First Investment Policy widens technology and deal coverage of China investment curbs

Summary

The America First Investment Policy memorandum covers a wide range of investment policy, but its sections on China expand both the technologies and the types of transactions subject to control. Biden's outbound investment rules covered only semiconductors, quantum and AI, whereas the memo asks for new or expanded limits that also consider biotechnology, hypersonics, aerospace, advanced manufacturing and directed energy. Restrictions may extend beyond equity stakes to private equity, venture capital, greenfield projects, corporate expansion, pension funds, university endowments and other limited-partner investments in listed securities. On inbound investment, the memo would restrict Chinese-linked investment in health care, agriculture, energy, raw materials and other strategic sectors. It also promises, in consultation with Congress, stronger screening of greenfield investment.