Mnuchin dismisses reports of tech restrictions on China

Mnuchin dismisses reports of tech restrictions on China

Mnuchin dismisses reports of tech restrictions on China

Citing national security concerns, which the White House says encompass economic as well as traditional defense matters, Trump in late May announced plans to impose steep tariffs on Chinese goods, and then by June 30 to unveil "specific investment restrictions and enhanced export controls" tied to "industrially significant technology" that will apply to Chinese companies and investors.

Treasury officials have argued that a stricter CFIUS would go a long way to protecting US technology, and any additional restrictions must be narrowly focused.

Noting hundreds of US military bases around the world, the newspaper said "this is hegemonistic mentality".

Before Mnuchin made his comments, Bloomberg and The Wall Street Journal reported that the White House was planning to heighten scrutiny of Chinese investments in sensitive United States industries under an emergency law.

This was reported by the Wall Street Journal, reports Interfax-Ukraine.

USA technology stocks were worst hit. Technology stocks and automakers were mostly in negative territory, with blue chips Toyota and SoftBank Group down 0.27 percent and 2.93 percent, respectively.

Investors and traders are anxious that threats of higher US tariffs and retaliatory measures could derail a rare period of synchronised global growth. Some U.S. steel and aluminium tariffs went into effect in April and additional tariffs begin in July.

Most economists warn that tariffs, including ones the USA has imposed on foreign steel and aluminium, are disrupting supply chains and risk discouraging investment and hiring. Last week it fell one percent - its biggest weekly drop in three months.

US Treasury Secretary Steven Mnuchin denied both reports.

European Commission President Jean-Claude Juncker, Donald Trump, and Xi Jinping.

"The U.S.'s strategic position vis-a-vis China, and indeed the major parts of the world, is undergoing a major paradigm shift at the moment - from that of a global policeman to a more trade-focus posture", Oh said.

China and the European Union vowed to oppose trade protectionism and unilateralism, saying those actions could push the world into recession in an apparent rebuke to the US.

He said markets have misunderstood the president's plans. "The rhetoric is getting stronger rather than weaker". Li said French companies were welcome to invest. "It's bad for growth", he said.

Speaking at the IISS Shangri-La Dialogue in Singapore earlier this month, Mattis said such actions were causing the U.S.to reconsider its "cooperative stance" toward China and warned that Beijing risked "larger consequences" in the long term.

Under the Trump administration, Chinese-backed deals have come under more aggressive scrutiny from the Committee on Foreign Investment in the United States, or CFIUS, an inter-agency panel chaired by the Treasury Department.

"I would not, on the investment side, be betting against the Treasury Department", Scissors said, noting that Treasury would control implementation of such rules.

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