China has proposed rolling back U.S. national-security restrictions on Chinese investments, linking the request to the possibility of a massive investment package that could total up to $1 trillion. The discussions, raised during trade talks in Madrid last month, come as both nations negotiate over tariffs, technology access, and the future of Chinese firms operating in the U.S.
- China’s negotiators tied the proposal to easing tariffs on inputs used in potential Chinese-built factories in the U.S., according to people familiar with the matter.
- The floated figure of $1 trillion was mentioned earlier this year, but the size and structure of any deal remain unclear.
- The talks followed a framework deal to keep TikTok operating in the U.S. under American oversight despite national security objections from lawmakers.
- President Xi Jinping personally urged President Trump to create conditions for Chinese companies to invest in the U.S. during a recent call.
- Any agreement would represent a sharp reversal from Washington’s decade-long crackdown on Chinese investments in sensitive sectors such as semiconductors and fintech.
- Chinese investment in the U.S. has fallen sharply, totaling just $2.1 billion in the first half of 2025, compared with a $57 billion peak in 2016.
- Trump has claimed the U.S. has attracted $17 trillion in investment commitments since his second term began, with China seeking a role in that push.
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Editor’s Note: This is a developing story. This article may be updated as more details become available.
