China: US Investment Restriction May Include Export Controls

Posted June 28, 2018

In May, the White House said that specifics of its plan - as well as stronger export controls that would stop United States firms from shipping certain technologies to China - would be officially announced by June 30, which is this Saturday.

American tariffs on foreign goods have threatened domestic supply chains and foreign manufacturing strategies for USA multinationals, and they've prompted retaliatory tariffs from trade partners expected to stunt global sales for US companies.

Tech shares dragged the entire market down Monday as traders readied for continued blows between the USA and Chinese governments.

But contradictory statements Monday from senior U.S. officials have muddied the waters on what path the White House will take. After failing to successfully negotiate for a reduction of the U.S.'s $375 billion trade deficit, the administration is enacting new tariffs on Chinese goods.

Meanwhile, later this week, the Treasury Department is due to unveil a proposal on investment and export restrictions.

More news: Belgium's De Bruyne set to miss 'celebration' England clash

Proposed restrictions on foreign investment in U.S. technology would not just be confined to China, according to U.S. Treasury Secretary Steven Mnuchin. The leaker either doesn't exist or know the subject very well. One of Xi's senior officials said, "China is not going to yield to outside pressure and eat the bitter fruit".

French nuclear group Orano and China National Nuclear Corp announced an agreement for preparatory work on a used fuel processing and recycling plant in China.

In the wake of threats from China, Christensen raised concerns that Taiwan may not be fully prepared militarily to deter Beijing's potential use of force against Taiwan. The ownership threshold may change before the announcement on Friday, Reuters reported, citing a government official briefed on the matter.

Actions such as US President Donald J. Trump's unilateral tariff hikes in a technology dispute with Beijing show World Trade Organization (WTO) rules need to keep pace with changes in business, said an European Union vice president, Jyrki Katainen. "It's something you could only dream about".

The Dow Jones industrial average fell 1.33 percent, or 328.09 points, to close at 24,252.80.

More news: Japanese took initiative to clean the stadium after the Japan-Senegal match

A trade expert warned against "creating a fortress America while the EU, China, and others play offence". Congress, in parallel, is working on legislation to reform the Committee on Foreign Investment in the United States, which would scrutinize inbound investment in the USA on national security grounds. Other major US indexes also finished lower on the first trading day of the week.

The Trump administration is also working on new export rules that would prevent those technologies from being shipped to China, the person said.

"There are serious structural concerns about Chinese practices that can not be resolved without trust between the negotiating partners" and that trust is eroding in the current confrontation, he told AFP.

The government official said the Treasury would invoke the International Emergency Economic Powers Act of 1977 (IEEPA) to devise the restrictions.

More news: How Theresa May saw off another Brexit rebellion