The Trump administration is considering
a crackdown on Chinese investments in technologies the US deems
sensitive by invoking a law reserved for national emergencies, among
other options, according to people familiar with the matter.
Treasury Department officials are working on plans to identify technology sectors in which Chinese companies would be banned from investing, such as semiconductors and so-called 5G wireless communications, according to four people with knowledge of the proposal, who spoke on the condition of anonymity.
The investment curbs would be the latest step in President Donald Trump's plan to punish China for what the U.S. sees as violations of American intellectual-property rights.
The president asked Treasury Secretary Steven Mnuchin to consider investment restrictions on Chinese firms after the administration released the results of its probe into China's IP practices last week.
Pending
legislation in the Senate and House to bulk up the Committee on Foreign
Investment in the US, the panel that currently reviews foreign
takeovers, will be part of the response, Ross said, adding that Trump
will take "other action."
The S&P 500 Index dropped 1.7 per cent on Tuesday, extending this month's decline, on concern about heightened trade tensions between the world's largest economies.
Treasury Department officials are working on plans to identify technology sectors in which Chinese companies would be banned from investing, such as semiconductors and so-called 5G wireless communications, according to four people with knowledge of the proposal, who spoke on the condition of anonymity.
The investment curbs would be the latest step in President Donald Trump's plan to punish China for what the U.S. sees as violations of American intellectual-property rights.
The president asked Treasury Secretary Steven Mnuchin to consider investment restrictions on Chinese firms after the administration released the results of its probe into China's IP practices last week.
While
investors have so far focused on Trump's plan to impose tariffs on
Chinese imports, new restrictions could deepen a slowdown in Chinese
investments in the US since Trump took office, hurting the ability of
American companies to raise capital and holding down valuations.
The S&P 500 Index dropped 1.7 per cent on Tuesday, extending this month's decline, on concern about heightened trade tensions between the world's largest economies.
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