Daijiworld Media Network – Beijing

Beijing, Oct 4: China is pressing the Trump administration to ease national-security restrictions on Chinese investments in the US, offering a potential investment package that could exceed $1 trillion, according to sources familiar with the talks. The proposals were discussed during trade meetings in Madrid last month.

The Chinese side is seeking reduced tariffs on imported inputs for Chinese factories in the US and more favorable conditions for investment, while also pressing for broader discussions on economic cooperation. Beijing has highlighted the opportunity to keep TikTok operating in the US, despite national security concerns raised by American lawmakers.

Senior Chinese negotiator Li Chenggang said the US has shown willingness to reduce investment barriers and promote cooperation, while President Xi Jinping personally urged President Trump to create conditions for Chinese enterprises to invest in America.

However, the proposals could represent a sharp reversal of US policy over the past decade. Critics, including Rep. John Moolenaar and former deputy national security adviser Matt Pottinger, warned against loosening restrictions, citing concerns over technology transfer, national security, and Beijing’s global Belt and Road ambitions.

If accepted, the investment would dwarf commitments from other countries: the EU has pledged $600 billion, Japan $550 billion, and South Korea $350 billion. Analysts suggest any deal could involve joint ventures with US firms, minority stakes for Chinese companies, and technology licensing arrangements.

Chinese investment in the US has slowed sharply from a peak of $57 billion in 2016 to just $2.1 billion in the first half of 2025, largely due to capital controls and security reviews. Any agreement would require careful navigation of federal and state-level restrictions and is seen as a potential milestone in Trump’s second-term trade strategy.