A National Security Presidential Memorandum (NSPM) was issued with the stated purpose of encouraging foreign investment while safeguarding national security, particularly against potential threats posed by foreign adversaries such as the People’s Republic of China. The NSPM underscores the importance of foreign investment for economic growth, job creation, and innovation, leveraging the United States’ financial markets.
The measure introduces a “fast-track” process to facilitate investments from designated allies and partners under specific conditions, including a requirement that these investors refrain from partnering with foreign adversaries. It also expedites environmental reviews for proposed investments exceeding $1 billion. At the same time, oversight of foreign investments—especially those linked to China—is strengthened through the Committee on Foreign Investment in the United States (CFIUS). This includes restricting Chinese involvement in strategic sectors (technology, infrastructure, healthcare, agriculture, energy, raw materials), protecting farmland near sensitive sites, reinforcing CFIUS authority over “greenfield” investments, and limiting adversaries’ access to U.S. talent and operations in sensitive fields.
The NSPM additionally proposes new rules to prevent exploitation of U.S. capital, technology, and expertise by foreign adversaries, potentially limiting or prohibiting outbound American investment in areas such as semiconductors, artificial intelligence, and biotechnology. The memorandum maintains that passive investments from all foreign actors remain welcome, allowing businesses to benefit from foreign capital while preserving national security.
Further provisions call for audits of foreign companies on U.S. exchanges to examine ownership structures and potential fraud, ensuring that entities linked to foreign adversaries do not benefit from pension plan contributions. These actions expand upon previous measures addressing intellectual property protection, trade secrets, and the safeguarding of emerging technologies. Overall, the directive aims to align foreign investment with American economic interests and national security objectives.
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