Trump backs off imposing China investment limits

Traders work on the floor of the NYSE in New York City

Traders work on the floor of the NYSE in New York City

Treasury Secretary Steve Mnuchin downplayed the perception that the new measures were aimed mainly at China, telling CNBC he did not expect any significant economic effects.

Senior administration officials told reporters on a conference call that sticking with CFIUS, a process companies are familiar with, would ensure strong inward investment into the United States while protecting the "crown jewels" of US intellectual property.

CFIUS has already been more aggressive under Trump, especially on China.

He has often criticized China harshly, accusing it of "economic aggression", yet insisted that he considers Chinese President Xi Jinping a friend. "We don't have to prevent the North Koreans buying USA technology because you can't buy USA technology with rice". "And we believe it will affect the competitiveness of the United States".

Trump's choice shows that he is favoring a more measured strategy that requires coordination with Congress, rather than working exclusively through the executive branch.

While Wednesday's statement from the president does not explicitly mention China, reports indicated that Trump was considering much harsher measures to specifically block Chinese investment as part of the ongoing fight over Chinese theft of American intellectual property.

"We don't see any problem ... we always follow global rules and the laws of the investment destination countries", Xiao told reporters on the sidelines of a conference on Belt and Road Initiative in Hong Kong in reply to a question over possible stricter screening of Chinese investments in the US. "If policy evolves in a week, and it's based on what somebody sees on Fox News, then you've got a problem".

DeBusk said that trade tensions have driven the U.S. stock market down and said that Trump might be seeking a way to avoid "a potentially catastrophic" trade war with China.

The Dow Jones fell 166 points (0.7pc) to 24,118, and the S&P 500 dropped by a sharper 0.9 per cent.

Asked about this apparent change in position, Mnuchin said, "It is not a question of whether we are focusing on China or we are not focusing on China" but rather an issue of using all available tools to deal with US-China trade disputes. "Like Goldilocks, the policy is either too hot or it's too cold".




"It is a welcome surprise given the other signals" from the administration, said Jake Colvin, vice president of the National Foreign Trade Council.

Instead, the promised export controls were replaced by a Commerce Department study and a reliance upon legislation to enhance the Committee on Foreign Investment in the United States, or CFIUS. "One week he's pulled one direction, the next, the opposite", said Senate Minority Leader Charles E. Schumer (D-N.Y.).

After CFIUS' review, the president can block transactions found to pose a threat to the national security of the United States, the official added.

"The administration is wise to set aside rumoured plans for broad, blunt executive action that could have hurt American manufacturers and consumers", said Rep. Ed Royce, R-Calif., the chairman of the House Foreign Affairs Committee. The Chinese don't want to play by the rules. That's a healthy process.

"If in fact President Trump is now backtracking on tough limits on Chinese investment, it is a VERY BIG MISTAKE", tweeted Sen. Marco Rubio (R-Fla.) wrote on Twitter. The legislation would give the interagency panel expanded authority to review cross-border business deals - other than takeovers - that involve sensitive technology transfers or sites near sensitive USA government facilities and have national security implications. He has long accused other nations of exploiting poorly negotiated trade deals and of using unfair practices to sell America far more than they buy from it.

In a statement, Trump said, "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".

Mnuchin told reporters that the differences among Trump's advisers had been overblown.

Still, the president's frequent tactical shifts mean no adviser's victory is ever permanent.

"Up until now, it hasn't worked".

Recommended News

  • Jimmy Fallon, Donald Trump Feud - Watch Response On Tonight Show

    Jimmy Fallon, Donald Trump Feud - Watch Response On Tonight Show

    I'm paid to make people laugh. "Get over it."' Fallon adds, 'I'm sorry if I made anyone mad. Jimmy Fallon is using his own soapbox to clap back at President Trump .
    Evangeline Lilly Calls Out Male Marvel Actors for Their Suit Complaints

    Evangeline Lilly Calls Out Male Marvel Actors for Their Suit Complaints

    Thompson said: "She's bi". "Women are so much stronger than men ... It's not as comfortable as yoga trousers , but it's a costume!'"

    Why the Socceroos don't need Cahill to beat Peru

    Van Marwijk said he expected the French to play for the win given their unconvincing showings in Russian Federation to date . Farfan himself took to social media to confirm that despite his desire to play, he must miss Peru's final group game.
  • Harry Kane set to start for England in group decider against Belgium

    Harry Kane set to start for England in group decider against Belgium

    Southgate has confirmed Eric Dier will start against Belgium , although the Tottenham man was only selected in 56% of your teams. The England boss called the game "an opportunity for players that need a match because they have not played a while".

    Brave Iceland sunk by late Croatia strike

    Croatia had its first clear chance when Milan Badelj's missile crashed onto the bar six minutes into the second half. Croatia kept its flawless record at the 2018 FIFA World Cup while sending Iceland home on Tuesday.
    Halle Open: Federers winning run continues, reaches semi-final

    Halle Open: Federers winning run continues, reaches semi-final

    With AP Photos.Defending champion Roger Federer has defeated Matthew Ebden 7-6 (2), 7-5 to reach the semifinals of the grass-court Gerry Weber Open.
  • Supreme court backs Trump on travel ban targeting Muslim-majority nations

    Supreme court backs Trump on travel ban targeting Muslim-majority nations

    The Trump administration has not publicly discussed any plans for future travel bans targeting additional countries. The ban prohibits entry into the United States of most people from Iran , Libya , Somalia , Syria and Yemen .
    The permutations and predictions for the final World Cup group matches

    The permutations and predictions for the final World Cup group matches

    Russian Federation advanced from Group A as a runner-up, and will square off with Group B victor , Spain , on Saturday as well. El Tri only need a draw against Sweden on Wednesday to officially make it through, while a win will guarantee them top spot.
    Moving Lump On Woman's Face Was Worm Crawling Inside Skin

    Moving Lump On Woman's Face Was Worm Crawling Inside Skin

    The report details how the woman from Russian Federation became the host of a parasitic worm after being bitten by a mosquito. The doctor who consulted the Russian Federation woman declared that the parasite "accidentally" infested her.
  • US begins to dismantle Iran nuclear deal sanctions relief

    US begins to dismantle Iran nuclear deal sanctions relief

    Iran, which is the third-biggest oil and second-biggest natural gas producer in the world, is to be barred from selling its oil. The rial's decreased value is expected to result in an increase in the price of imported goods and push up the inflation rate.
    Trump Blasts Harley-And Gets Facts Wrong-Again

    Trump Blasts Harley-And Gets Facts Wrong-Again

    The president has repeatedly attacked Amazon.com Inc over what he sees as its unfair treatment of the U.S. According to Bloomberg , Harley's USA sales have dropped every quarter since Q1 2015.
    Lawyers bemoan access to Texas immigrant lockup

    Lawyers bemoan access to Texas immigrant lockup

    Annunciation House Director Ruben Garcia says the parents were brought by bus after federal authorities withdrew criminal charges. But it's unclear whether detained parents have access to computers to send an email, or how their phone systems work to call out.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.