Trump backs off imposing China investment limits - Newspaper

Trump backs off imposing China investment limits - Newspaper

Trump backs off imposing China investment limits - Newspaper

Trump also said that upon final passage of the legislation, he will direct his administration "to implement it promptly and enforce it rigorously, with a view toward addressing the concerns regarding state-directed investment in critical technologies".

President Donald Trump has announced the details of a plan to crack down on Chinese investment in U.S. technology companies, and the final results were weaker than expected.

President Trump on Wednesday softened proposed limits on China's right to invest in US technology companies, the latest sign of an on-again, off-again trade war that is raising doubts about his ability to wring concessions from Beijing.

The US House of Representatives on Tuesday approved a bill that would make changes to the committee's law.

On July 6, the United States is set to impose tariffs on $34 billion in Chinese imports - a sum that could reach $450 billion if Beijing refused to yield and retaliated with its own sanctions.

If Congress does not produce a compromise bill, Trump said his administration would "deploy new tools, developed under existing authorities" to protect US technology and intellectual property.

In his approach to China, Trump repeatedly has oscillated between tough talk and conciliation.

Though neither the new legislation nor Trump specifically named China as the target, several lawmakers have repeatedly mentioned that Chinese acquisitions of US technology companies make the bill's passage necessary.

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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.

The Chinese government has criticised a USA move to expand the powers of its foreign investment watchdog.

After days of declines and increased volatility amid fears of a worsening trade war, United States stocks rallied, with the benchmark Dow Jones Industrial Average up 0.9 per cent shortly after 1400 GMT, echoing the more optimistic sentiment in European markets. By opting for the expanded use of CFIUS instead of new controls on Chinese investment, Trump appears to be trying to ease the tensions between the two sides slightly.

James Lewis, who studies technology policy at the Center for Strategic and International Studies, said he foresees no quick resolution to the dispute. "It's confused the Chinese about what the US really wants".

Xiao Yaqing, the chairman of the Asset Supervision and Administration Commission, the regulator of the biggest state industrial conglomerates, said the Chinese government would not be angry "as long as they don't discriminate against us".

"At the end of the day, all the president's advisers were 100 per cent unanimous when we sat down with the president", Mnuchin said. After news of the White House decision broke early Wednesday, stock futures rallied.

Trump says in a statement on Wednesday that "such legislation will provide additional tools to combat the predatory investment practices that threaten our critical technology leadership, national security, and future economic prosperity".

The president can direct CFIUS to heighten scrutiny on sensitive technologies.

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