China Opposes US First Investment Policy... "Unmarket-Oriented Action"

The Chinese government has opposed the 'America First investment policy,' which restricts U.S. investments in China and Chinese investments in the U.S. The Chinese government criticized the America First investment policy as unreasonable and non-market-oriented.

Chinese President Xi Jinping is delivering a commemorative speech on the 120th anniversary of Deng Xiaoping's birth at the Great Hall of the People in Beijing on the 22nd. On this day, President Xi praised Deng Xiaoping's achievements, saying he made outstanding contributions to the Party, the people, the country, and the world. Photo by Yonhap News

A spokesperson for the Chinese Ministry of Commerce stated on the ministry's website on the 22nd, "The U.S. approach generalizes the concept of national security," adding, "It has a discriminatory nature and is a non-market-oriented practice." Furthermore, the spokesperson emphasized, "It seriously affects the normal economic and trade cooperation between enterprises of the two countries," and "The U.S. conducting stricter security reviews on Chinese investors will severely damage the trust of Chinese companies investing in the U.S."

Regarding the U.S. restrictions on investments in China, the spokesperson also said, "It is very unreasonable," and pointed out, "Many U.S. business groups and companies will have to cede the Chinese market to other competitors due to the investment restrictions."

They continued, "We hope the U.S. will provide a fair, transparent, stable, and predictable environment for Chinese companies investing in the U.S.," and "China urges the U.S. to comply with international investment and trade rules and market economy rules, and to stop politicizing and weaponizing economic and trade issues." The statement added, "China is closely monitoring U.S. developments and will safeguard its legitimate rights and interests through necessary means."

U.S. President Donald Trump signed the 'America First investment policy' memorandum on the 21st (local time). This memorandum encourages allied countries' investments in the U.S. in strategic industries while restricting bilateral investments between the U.S. and China. Going forward, the U.S. is expected to use legal tools such as the Committee on Foreign Investment in the United States (CFIUS) to limit investments by Chinese individuals and companies in U.S. strategic sectors and to restrict U.S. companies' investments in Chinese strategic industries.