22. Department of the Treasury · Notable
Restrict and require reporting of U.S. foreign direct investment in China
Printed page 705 22. Department of the Treasury
“Treasury must also seriously evaluate U.S. foreign direct investment in China. … An enhanced reporting system is warranted, and greater legal authority and restrictions are appropriate.”
What has happened
- Attempted
The America First Investment Policy memorandum ordered the evaluation this Quote asks for and pointed it at more reporting and more restriction. Section 2(i) says the United States "will also use all necessary legal instruments to further deter United States persons from investing in the PRC's military-industrial sector", including sanctions under IEEPA and action under Executive Order 14105; section 2(j) puts Executive Order 14105 under review and says the administration "will consider applying restrictions on investment types including private equity, venture capital, greenfield investments, corporate expansions, and investments in publicly traded securities, from sources including pension funds, university endowments, and other limited-partner investors", with covered sectors reviewed and updated regularly; section 2(k) adds a review of whether to suspend or terminate the 1984 United States-PRC income tax convention. No expanded outbound rule has been issued since.
Research log
What was searched, and what didn’t count as evidence
Research notes
Context for the leveling, recorded so a later pass does not double-count it: Treasury’s Outbound Investment Security Program (31 CFR part 850), which requires notification of, and prohibits, defined United States investments in Chinese semiconductor, quantum and artificial-intelligence companies, took effect on 2025-01-02 — eighteen days before the evidence window opens. It is the “enhanced reporting system” the Quote wants and it is already in force; what the window contains is a directive to review and expand it, which is why this is attempted rather than partial.
The only in-window Federal Register document on the program is the annual civil monetary penalty inflation adjustment notice of 2025-01-29.
- Action
- restrict
- Object
- U.S. foreign direct investment in China
- ID
- 1980