The memo instructs federal agencies to prioritize policies and programs that encourage domestic production and investment, particularly in areas deemed vital to national security and economic resilience, such as healthcare, semiconductors, energy, and defense-related manufacturing. It also emphasizes the need to reduce reliance on high-risk foreign sources, particularly PRC-based entities, and directs agencies to implement procurement and funding policies that favor U.S.-based production and suppliers.

The memorandum further signals a more restrictive approach to inbound and outbound investments in sensitive industries. It calls for agencies to assess and enhance existing mechanisms for reviewing foreign investments in the U.S., which could indicate potential expansions in the scope or enforcement of CFIUS review. These include new possible restrictions on “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.” Additionally, the directive lays the policy groundwork for expanded outbound investment restrictions. Similar to the policy recommendations outlined by the House Select Committee on China, the White House memo calls for targeted restrictions on high-risk sectors such as semiconductors, artificial intelligence, quantum, biotechnology, hypersonics, aerospace, advanced manufacturing, directed energy, and other areas implicated by the PRC’s national Military-Civil Fusion strategy.