Published: Sat, June 30, 2018
World Media | By Cesar Oliver

Trump Softens Approach to Restricting Chinese Investment in US

Trump Softens Approach to Restricting Chinese Investment in US

"We can't let people steal their technology", Trump said when asked if the U.S. administration was preparing the investment restrictions.

It comes as the United States and China both prepare to slap tariffs on $34bn worth of each others' goods.

US President Donald Trump today said he supported tougher restrictions on foreign investment in sensitive technology, as well as export controls on those goods, but he stopped short of imposing specific restrictions on China. The president has threatened to impose an estimated $450 billion in tariffs on Beijing in an effort to reverse what he has labeled as bad trade deals with China. Tariffs on $34 billion in Chinese products are scheduled to take effect July 6, with up to anadditional $416 billion possible in subsequent months.

Mnuchin noted that the House approved by a lopsided vote legislation to enhance the powers of the committee that decides whether foreign investment would pose a security risk to the United States.

CFIUS has already been more aggressive under Trump, especially on China.

Trump's White House has charged Beijing with conducting predatory practices in an attempt to undermine the USA edge on technology, including cybertheft and forcing US companies to turn over technology in exchange for access to China's market.

White House officials say that in addition to the decision to protect US technology through CFIUS, the president has instructed the Commerce Department to "assess the current export regime" to determine if rules about sharing important technologies with other countries. should be tightened.

DeBusk said that trade tensions have driven the USA stock market down and said that Trump might be seeking a way to avoid "a potentially catastrophic" trade war with China.

The Senate Banking Committee also approved a version of the reform, so the two chambers will have to reconcile them into a single bill for Trump to sign.

With a value of roughly $14 trillion, the Chinese economy is the second largest in the world to the US economy, but is growing at a much faster pace, according to the International Monetary Fund.

"It shows the Chinese that the Trump administration is still undependable and can be moved back from the most hardline positions", Kennedy added. The Chinese don't want to play by the rules.

"Should Congress fail to pass strong FIRRMA legislation that better protects the crown jewels of American technology and intellectual property from transfers and acquisitions that threaten our national security - and future economic prosperity - I will direct my Administration to deploy new tools, developed under existing authorities, that will do so globally", Trump said in a statement. The panel vets certain deals that could give foreign investors control of a United States business for national security concerns.

The president can direct CFIUS to heighten scrutiny on sensitive technologies. -China trade conflict, got an early lift from Trump's announcement.

Through this review, U.S. will assess its export controls and make any modifications that may be needed to strengthen them to defend national security and technological leadership.

"Mnuchin, it seems like he is prevailing on a lot of these disputes", said Steve Moore, who was a top economic adviser to Trump during the campaign.

Like this: