China has told the United States government directly to stop using trade and investments as political weapons, according to an official statement released Saturday by China’s Ministry of Commerce in Beijing.
The ministry spoke out after President Donald Trump’s administration introduced new limits on investments from China into US companies, which the American government linked directly to national security concerns under Trump’s “America First” policy.
The Ministry of Commerce criticized Washington openly, stating clearly that such measures will severely damage Chinese companies’ confidence when they try to invest in America. According to the ministry, these new policies mean tougher reviews for Chinese business ties and will hurt relations between the world’s two biggest economies.
China’s reaction came just days after President Trump’s administration released the “America First Investment Policy,” where it openly labeled China as one of the US’s main “adversaries.” The policy document accused China specifically of pushing its companies to invest heavily in American firms to gain access to advanced technology, intellectual property rights, and influence over strategic industries in America.
In the same week, Scott, Trump’s Treasury Secretary, spoke to Bloomberg TV about America’s trade relationship with China. Scott bluntly labeled China’s economy as “the most unbalanced economy in the history of the world.” Scott pointed to Beijing’s $295 billion trade surplus with Washington as a central reason for the ongoing tension between the two nations.
The spokesperson from China’s Ministry of Commerce responded by promising that Beijing will keep watching America’s actions closely. China said openly that it will take any necessary actions needed to protect its own interests and rights in the face of what it called unfair American policies.
In response to earlier US tariffs put in place by President Trump’s administration, China already imposed their own limited tariffs on American goods. Additionally, China reacted strongly this past week when Washington blamed it for failing to stop fentanyl trafficking. China’s Commerce Ministry spokesperson stated clearly that America was using the fentanyl issue as just an excuse for more tariffs against Chinese products.
The very next day, China’s Commerce Ministry released another statement against proposed American measures aimed at China’s maritime, logistics, and shipbuilding sectors. According to Beijing, these US measures would damage both sides economically. China openly urged America to stick to international rules, stop taking damaging actions, and “respect the facts.”
China calls out US State Department over updated fact sheet
On Thursday, Guo Jiakun, China’s Foreign Ministry spokesperson, criticized the US State Department’s new fact sheet on China, which the American government updated online on February 13. Guo spoke during his regular press briefing in Beijing, calling the State Department’s update an “attack” on China and accusing America of twisting the truth about the two countries’ relations.
Guo directly told the US government: “We strongly deplore and firmly oppose it,” and he further demanded Washington to “stop misleading the US people and the international community” and to “stop smearing and putting pressure on China.”
The updated fact sheet, published on the State Department’s official website, now clearly emphasizes the economic rivalry between America and China. The US government document directly says it wants a future economy free from “untrusted technology from China and other authoritarian states.”
In contrast, the older version of the fact sheet listed multiple areas where America and China cooperated, like fighting pandemics, stopping drug trafficking, and improving environmental standards. Now, the new version removed all these cooperative areas completely.
Guo further criticized the new US language, saying it pushes a dangerous idea of constant strategic competition between America and China instead of encouraging any form of cooperation.
Interestingly, Trump’s own approach toward China remains somewhat mixed. Although he often praises Chinese leader Xi Jinping personally, Trump has surrounded himself with advisers who are openly aggressive toward China.
For example, Marco, Trump’s Secretary of State, is famously tough on China. He is the first US Secretary of State ever to be officially sanctioned by China. Trump’s national security adviser, Mike, openly said back in 2021 that America was in “a Cold War with the Chinese Communist Party.”
The State Department’s fact sheet update also included a smaller but symbolic change: it now refers to the country simply as “China,” removing the full name “People’s Republic of China,” which was used consistently before.
On the very same day, the State Department also changed its official fact sheet on Taiwan. Before, the US clearly stated that it “does not support Taiwan independence,” a phrase repeatedly demanded by Beijing from all countries that have diplomatic ties with it. Now, that phrase has disappeared entirely from the Taiwan fact sheet. The timing of these two simultaneous changes strongly suggests a coordinated American approach.
China directly sees these updates as further proof of America pushing competition over cooperation. With these updated documents, the US government sent a strong political message, making it clear they see China mainly as a competitor rather than as a partner.
The Ministry of Commerce, meanwhile, remains firm in its response. Beijing promised again it would closely watch every move America makes and said openly it would respond firmly to any new restrictions.
China clearly stated it believes the US is damaging not only Chinese companies and investments but also hurting America itself through these political actions. The Chinese government argues openly that turning trade into a political weapon will lead to negative economic effects for both countries.
China tries again to boost foreign investment
China is making another attempt to attract foreign investment, rolling out a new action plan aimed at easing restrictions in key industries. But with geopolitical tensions rising and businesses demanding concrete changes, skepticism remains over whether these promises will translate into real opportunities.
On February 19, Chinese authorities published the “2025 Action Plan for Stabilizing Foreign Investment,” which pledges to loosen restrictions on foreign capital in telecom and biotech and provide clearer rules on government contracts—a major concern for international businesses.
The plan also proposes a gradual opening of China’s education and culture sectors to foreign investors.
“We are looking forward to seeing this implemented in a way that delivers tangible benefits for our members,” said Jens Eskelund, president of the European Union Chamber of Commerce in China, in a statement Thursday.
The chamber noted that while China has repeatedly promised to open up telecom, healthcare, education, and culture, companies are still waiting for clear rules and action. The potential changes in public procurement policies were highlighted as a positive step—but only if fully implemented.
Foreign investment continues to shrink
China’s latest move comes as foreign direct investment (FDI) continues to decline sharply.
The Ministry of Commerce reported that FDI fell 13.4% in January to 97.59 billion yuan ($13.46 billion).
This follows a 27.1% plunge in 2024 and an 8% drop in 2023, ending eight consecutive years of growth, according to official data from Wind Information.
The action plan calls for all regions to implement these measures by the end of 2025 to “effectively boost foreign investment confidence.”
Officials emphasized in a press conference Thursday that more supporting policies would be announced soon.
Michael Hart, president of the American Chamber of Commerce in China, said his group welcomes the move but wants real changes, not just promises.
“We appreciate the Chinese government’s recognition of the vital role foreign companies play in the economy,” Hart said. “We look forward to further discussions on the key challenges our members face and the steps needed to ensure a more level playing field for market access.”
Despite Beijing’s latest promises, foreign companies are pulling back.
A recent AmCham China survey found that a record number of U.S. businesses are either shifting operations out of China or actively exploring alternatives.
Last year’s survey had already shown that companies were struggling to make money in China at the same levels they did before the COVID-19 pandemic.
Meanwhile, China’s consumer spending remains weak. Retail sales have barely grown in the last few months, and tensions with the U.S. have escalated, with Washington restricting China’s access to advanced tech and imposing new tariffs.
Is Beijing serious this time?
While some elements of the new action plan have been previously mentioned, other proposals—like allowing foreign firms to buy local equity using domestic loans—are relatively new, said Xiaojia Sun, a Beijing-based partner at JunHe Law.
She also highlighted Beijing’s push to support foreign investors in mergers and acquisitions, which could help global companies establish a stronger foothold in China.
“This action plan is a very strong signal,” Sun said. She expects Beijing to follow through, noting that the announcement comes just days after a high-profile meeting between Chinese President Xi Jinping and business leaders, including Alibaba founder Jack Ma.
In recent years, China’s regulatory crackdowns and economic uncertainty have scared off investors, but Beijing is now trying to rebuild confidence.
Analysts at Citi say China is trying to balance retaliation against U.S. tariffs while keeping foreign investment stable.
“We believe Chinese policymakers are likely cautious about targeting U.S. multinationals as retaliation,” Citi analysts wrote. “FDI brings technology, jobs, revenue, and tax income. China needs to keep that flowing.”
In a rare acknowledgment, Chinese Commerce Ministry officials admitted Thursday that geopolitical tensions are affecting investment.
They pointed out that foreign companies still account for nearly 7% of China’s employment and around 14% of its tax revenue—a clear signal that despite rising nationalism, China still needs global business to keep its economy running.
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