White House memorandum on U.S. tax and trade policies focuses on China

Including review of whether to suspend or terminate 1984 U.S.-China income tax treaty

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February 24, 2025

President Trump on February 21, 2025, signed a memorandum regarding U.S. “investment policy,” stating  that the United States will use all necessary legal instruments to further deter U.S. persons from investing in China’s military-industrial sector. The memorandum specifically states that the Trump Administration will review whether to suspend or terminate the 1984 U.S.-China income tax treaty.

The accompanying White House fact sheet (February 21, 2025) also states that the memorandum builds on numerous actions the administration took in its first term, including initiating an investigation under Section 301 of the Trade Act of 1974 into China’s practices related to forced technology transfer, unfair licensing, and intellectual property policies.

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