China has offered the Trump administration a massive investment package potentially worth as much as $1trn in exchange for the United States easing restrictions on Chinese investments and deals, Bloomberg has reported, citing informed sources.
According to the report, negotiators for Chinese President Xi Jinping are also pushing the US to lower tariffs on imported inputs that would be used by Chinese factories planned for construction on American soil.
The proposals were reportedly raised during trade talks in Madrid last month, where the two sides reached a framework agreement to allow the Chinese social media app TikTok to continue operating in the United States despite security concerns raised by US lawmakers.
One source told Bloomberg that Beijing had initially floated a figure of $1trn earlier this year, though the potential size of the investment currently under discussion remains unclear.
The offer is part of a set of bold demands that also includes pressure on Washington to change its decades-old stance on Taiwan, a red line for the United States.
The proposals represent a significant shift from the trade negotiations of President Donald Trump’s first term, which focused more on China’s purchases of US exports than on investments within the US, an area subject to strict national security reviews.
A White House spokesperson declined to give a direct response to Bloomberg, stating that the administration is currently focused on ensuring China adheres to its existing commitments under the “Phase One” trade deal. The spokesperson added that Washington continues to engage with Beijing with the goal of securing a level playing field for American companies, farmers, and workers.
In March, the world’s top two economies have edged closer to a trade war after Trump slapped more tariffs on all Chinese goods. China quickly retaliated, imposing 10-15% tariffs on US farm products.
“If war is what the US wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end,” China’s embassy said on X, reposting a line from a government statement at the time.
In June, China accused the United States of “provoking new economic and trade frictions” as it responded to US President Donald Trump’s claims that Beijing had violated a trade truce agreed by the two nations last month, which paused their blistering tariff war.
“A huge concession to Beijing”
It remains unclear whether President Trump will accept the Chinese offer ahead of a potential summit with President Xi in South Korea later this month, though one source indicated that Washington has “not ruled out any option yet.”
Questions remain about the size and structure of any potential investment commitments. The model used for the TikTok deal, which grants US control over the Chinese entity’s operations within the United States, could be one option.
The proposal has already drawn criticism in Washington. Republican Representative John Moolenaar, chairman of the House select committee on China, warned that China “routinely cheats in its dealings with the United States” and cautioned against easing investment restrictions.
“China has used its market and companies as a weapon against us for decades, and we cannot allow those companies to gain more access to our economy,” he said.
Matt Pottinger, a former US deputy national security adviser, described allowing a massive flow of Chinese investment into the American economy as “a huge concession to Beijing.”
“It would be tantamount to the United States joining the Belt and Road Initiative, and perhaps even becoming its final destination,” he said.
Rebalancing economic relations by attracting major investment flows to the US has been a cornerstone of Trump’s second-term trade strategy. He has repeatedly stated that the country has attracted $17trn in investment commitments since he took office in January and that his top priority with China is “frankly, and most importantly, to reach a big deal.”
Investment flows slow
A potential Chinese investment of $1 trillion or more would dwarf commitments from other countries to the US during Trump’s second term. The European Union has committed to $600bn in investments over the next four years, while Japan has pledged $550bn.
Any deal to open the door to significant Chinese investment would mark a sharp reversal of the policies adopted by both Washington and Beijing over the past decade. After peaking at a record $57bn in 2016, Chinese investment in the US has slowed dramatically, reaching just $2.1bn in the first half of 2025, according to data from Rhodium Group.
The Committee on Foreign Investment in the United States (CFIUS), led by the Treasury Department, has been central to these restrictive efforts, blocking a Chinese acquisition of the money transfer company MoneyGram and forcing the sale of the dating app Grindr by a Chinese investor, citing security risks in each case.
