US President Donald Trump plans to prevent many Chinese companies from investing in US technology and ban the export of more technology to China. A government official said the US Treasury was drafting restrictions that would block companies owned by China by 25 percent. At least one percent of the purchase of US companies with important industrial technology.
The official, whose remarks coincided with a report by the Wall Street Journal, said the threshold for Chinese ownership could change before the restrictions were announced on Friday. This move marks another escalation of the trade conflict between President Donald Trump and China, which threatens to disrupt financial markets and impede global growth. These actions should be announced by the end of the week.
The measures are aimed at countering China's "Made in China 2025" initiative, which Beijing relies on to become China's world leader in technology. The tariffs on Chinese goods are supposed to come into force on July 6, 34 billion dollars of the total 450 billion dollars of goods, prompting China to announce retaliatory measures on US imports.
The tariffs were imposed on the United States' resentment of Chinese attempts to steal US technology through joint ventures and other policies. According to the US official, the US Treasury's investment restrictions are expected to be shaped by key sectors, including several projects Which China is trying to develop as part of the "Made in China 2025" initiative.
The initiative aims to develop China's capabilities in the field of advanced information technology, aerospace, marine engineering, pharmaceuticals, pharmaceutical industries, advanced electric vehicles, robots and other advanced technology industries. The Wall Street Journal said the US Department of Commerce and the National Security Council propose enhanced export systems to prevent the transfer of these Technologies to China.
The Treasury Department will invoke the International Economic Powers Act of 1977 (IEEPA) to put in place restrictions. The law gives the president broad authority to restrain assets on the basis of national security concerns. The IEEPA policy was widely used after the Sept. 11 attacks, 2001 to cut off funding for terrorist networks.
US President Donald Trump's administration seems to be moving to implement these measures on new deals and will not try to stop or rule out existing deals, making sure that the restrictions do not distinguish between Chinese state-owned enterprises and private companies.
Trade tensions between the two global giants have escalated over the past few weeks, with the White House announcing on May 29 that the administration of President Donald Trump will press ahead with restrictions on investment by Chinese companies in the United States, Of goods exported to China, with details announced by June 30, as well as a revised Chinese goods list, which will be subject to the new customs tariff, which the Administration did on June 15.
The move could further damage relations between Washington and Beijing, as the Trump administration has tightened restrictions on what it considers unfair Chinese trade practices. These latest measures could undermine China's efforts to become a world leader in 10 emerging technology fields
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