US President Donald Trump has issued a directive to impose stricter rules on Chinese investments in key sectors such as technology and critical infrastructure.
The decision, announced on Friday, is part of efforts to regulate foreign investments while safeguarding national security.
The White House explained that the restrictions are necessary due to concerns about foreign adversaries, particularly China, using American financial resources to strengthen their military, intelligence, and security systems.
As part of this move, the Committee on Foreign Investment in the United States (CFIUS) will have more authority to block Chinese investments in industries like healthcare, energy, and advanced technology.
This action follows a series of trade measures between the US and China, including additional customs duties of 10 percent on all Chinese imports introduced earlier this month.
The US government has linked these tariffs to China’s alleged involvement in the fentanyl trade, a claim that Beijing has denied.
Despite the restrictions, Trump recently hinted that a trade agreement with China remains a possibility.
The development adds to ongoing trade tensions between the two largest economies in the world.