President Trump signed a memorandum restricting Chinese investment in critical sectors including farming, food supplies, minerals, natural resources, shipping ports and technologies used to protect national security.

The directive orders the Committee on Foreign Investment in the United States to restrict Chinese investments. CFIUS is a government body composed of multiple agencies that screen foreign investments in American companies for potential national security risks.

“Investment at all costs is not always in the national interest, however, certain foreign adversaries, including the People’s Republic of China, systematically direct and facilitate investment in the United States companies and assets to obtain cutting-edge technologies, intellectual property and leverage in strategy industries,” the memorandum said. “The PRC pursues these strategies in diverse ways, both visible and concealed, and often through partner companies or investment funds in third countries.”

Under the order, Chinese investment will be restricted in “the crown jewels” of the United States – technology, food supplies, farmland, minerals, natural resources, ports and shipping terminals.

“Economic security is national security,” the memorandum said.

The directive requires CFIUS to establish new rules to “curb the exploitation” of U.S. capital, technology and knowledge. It also requires CFIUS to consider new or expanded restrictions on U.S. outbound investments to China in sensitive technologies such as semiconductors, artificial intelligence, quantum, biotechnology, aerospace and more.

In 2022, President Biden signed an executive order requiring CFIUS to more stringently scrutinize foreign investment in the U.S. It was a clear signal that Washington is concerned about China’s efforts to overtake America’s lead in critical technologies, such as semiconductors.

Mr. Biden’s order expanded the list of factors that CFIUS must consider before approving a deal. He signed the order after Snapdragon Chemistry, a Chinese pharmaceutical company, abandoned its bid to acquire U.S. technology firm Asymchem after the deal was rejected by CFIUS.

Mr. Trump’s memorandum will also protect farmland and real estate near sensitive areas. Foreign entities and individuals own roughly 43 million acres of U.S. agricultural land, or roughly 2% of all the land in the United States, according to the U. S. Department of Agriculture.

• Jeff Mordock can be reached at jmordock@washingtontimes.com.