The Trump administration is prioritizing "America First” - but what does that mean in the context of global initiatives like foreign direct investment (FDI)?
Michael Considine, a Senior Advisor at FGS Global who spent over 15 years investigating transactions before the Committee on Foreign Investment in the United States (CFIUS), recently joined Skadden’s Foreign Correspondent podcast to break down the America First Investment Policy. He joined Tatiana Sullivan, lead counsel on CFIUS, DCSA and government contracting matters at Skadden, and host Jason Hewitt, who leads Skadden’s non-U.S. investment screening practice in Europe, to unpack the policy's implications, the evolving role of CFIUS and the importance of global cooperation in shaping the future of cross-border investments.
Their conversation began with an exploration of the America First policy’s core tenets. Like many other FDI frameworks, the policy aims to balance two priorities: inviting foreign investment from allies and protecting national security against weaponized investments from adversaries. In this case, that means a particular focus on limiting China by expanding restrictions across greenfields, real estate investments and outbound investment from the U.S. into China. On the flip side, it also means a welcoming stance toward passive investments and investments in key sectors like critical technology, infrastructure and sensitive data - provided they’re appropriately distanced from foreign adversaries. For repeat investors, the process may be made even easier with a known investor portal, though how this will be implemented remains to be seen.
One thing that is clear is that, while the focus on China is not new, it is heightened. As China seeks to establish dominance in sectors like semiconductors, batteries and other emerging technologies, CFIUS will be scrutinizing these areas quite closely. That’s not to say that no investments will be allowed, but rather that each case will be measured against a host of factors and considerations including merits of the transaction and the context of the industry's sensitivities. Complicating this challenge further is the fact that sectors, especially emerging ones like AI or quantum computing, are not stagnant, so where the bar is in terms of sensitivity will be constantly evolving.
At the same time, these sectors will become particular targets for the expanded outbound investment regime of the America First policy. However, as Michael noted, the success of these restrictions depends on global cooperation. Without alignment, adversarial transactions could simply shift to jurisdictions with weaker regulations. Strengthened collaboration between the U.S. and its European allies is critical to ensuring a unified approach to protecting shared interests.
It does seem that this cooperation is taking hold following the roll out of the America First policy. The US and European partners and allies are sharing information about where newer risks may be emerging and, when they are, how regulators are dealing with those risks and what mitigation measures they are putting on transactions. The idea of a fast-track for known investors could further enhance cooperation, creating a smoother and speedier track for deals among allies and partners. Further, bringing this and other tools across FDI screening, export controls and investment security together globally could create a more predictable investment environment to help investors navigate approvals and reduce uncertainty in cross-border transactions.
Increased cooperation is no accident – the America First Investment Policy directly speaks to the value of attracting partner and ally investment and for the United States and the economic security of the country. It is meant to be a policy that reinforces the concept of the U.S. as a preeminent destination for foreign direct investment – and moving forward, we will continue to see this administration focus on that.
From a process standpoint, we’ll also continue to see new efficiencies unlocked, especially through the known investor portal that could deliver outcomes for transactions faster and transform cross-border dynamics. Still, the CFIUS system remains rooted in national security, and balancing this with higher volumes of deals will always be a priority.
The America First Investment Policy is a clear signal of the U.S. government’s intent to remain a leader in attracting foreign direct investment while safeguarding national security. As global dynamics continue to evolve, this framework will play a critical role in shaping the future of cross-border investments.
