Trump backs off limiting Chinese investment in U.S. technology companies

Trump backs off limiting Chinese investment in U.S. technology companies

Tech stocks declined sharply earlier this week when news reports suggested Trump would choose broad limits on Chinese investment.

The House on Tuesday approved a bipartisan bill 400 to 2.

David Dollar, the Obama administration Treasury Department's top economic emissary to China, called Trump's approach to China "chaotic" and said it left Beijing confused about his ultimate aims.

President Trump's chief economic adviser Larry Kudlow, who returned to the White House two weeks after being hospitalized for a mild heart attack, is interviewing candidates for two positions on the National Economic Council (NEC) that will be vacated in July. But there is little doubt that USA security agencies do have serious national security concerns about Chinese technology companies such as Huawei and ZTE for example.

Stock markets surged Wednesday following President TrumpDonald John TrumpCrowley stunner tops huge night for left Trump congratulates Romney on primary win Judge orders Trump admin to begin reuniting immigrant families MORE's decision not to impose new executive restrictions on foreign investments.

The comments ran counter to a May 29 White House statement: "The United States will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology". In response, China is prepared the same day to slap tariffs on billions in USA exports, including soybeans - a direct threat to Trump supporters in America's heartland.

After reviewing the current versions of FIRRMA with my team of advisors and after discussing them with many members of Congress I have concluded 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, he said. It said the controls would be announced by June 30 and would "be implemented shortly thereafter".

Tite 'tore some fibres' celebrating Brazil's late victory over Costa Rica
The PSG star collapsed to the ground and burst into tears while the rest of his team-mates celebrated. Man of the match Coutinho said Brazil's win came as a result of the team showing great patience.

"After CFIUS' review, the President can block transactions found to pose a threat to the national security of the United States". "The President has led on the issue of foreign competitors principally from China, who are aggressively acquiring sensitive USA technology", the official said.

The House passed a bill expanding CFIUS' authority this week.

Other Republicans who were more anxious about Trump's battle with China applauded the course of action.

"The market took that as a sign that the hardline approach to China has not waned", said Quincy Krosby, chief market strategist at Prudential Financial. "It avoids use of emergency powers, which would have created a new ad hoc and highly uncertain framework", said Robert Kahn, a professor at American University who previously worked at the World Bank and International Monetary Fund.

According to the Rhodium Group, a research firm, Chinese investment in the United States fell 35 per cent in 2017 from the record US$45.6 billion (RM183 billion) in 2016, and has slowed to a trickle, just US$1.4 billion in the first quarter of this year. "What they don't steal from us they buy away from us".

Mnuchin on Wednesday increased pressure on Congress to approve the Foreign Investment Risk Review Modernization Act, or FIRRMA, saying lawmakers must act fast.

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