Recently, the United States unveiled its 'America First Investment Policy', marking a significant shift in its approach towards China. This comprehensive policy aims to deter, suppress, and encircle China through a series of strategic measures.
Key components of the memo include:
- Investment Restrictions: Preventing China from making direct or indirect investments in cutting-edge technologies, intellectual property, and strategic industries.
- Asset Blocking: Blocking Chinese investments in critical US assets such as technology, food supplies, farmland, minerals, and ports.
- Capital Access Limits: Restricting China’s ability to raise capital in the US through securities issuance, index investments, and funds, particularly those supporting military and intelligence sectors.
Additionally, the policy outlines stricter scrutiny on countries collaborating with China, aiming to limit China’s access to US capital, technology, and expertise. This move also includes the suspension or termination of reciprocal agreements between China and the US, including those related to taxation.
In recent years, Chinese A-shares have been included in major financial indices such as MSCI and the Dow Jones. However, the US authorities are now set to reassess these financial collaborations, signaling a potential shift in the global financial landscape.
This policy package represents a systemic and comprehensive approach, moving beyond previous measures to impose more stringent controls on China’s economic activities in the US. The implications for global markets are significant, as businesses and investors navigate the evolving regulatory environment.
Stay tuned to amigonews.net for more updates on how these changes unfold and what they mean for the future of international trade and investment.
Reference(s):
cgtn.com
