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Chinese President Xi Jinping as well as U.S. President Donald Trump attend a welcome ceremony at the Great Hall of the People in Beijing on November 9, 2017.
President Donald Trump plans to bar many Chinese companies by investing in U.S. tech as well as to block additional technology exports to China, The Wall Street Journal reported on Sunday evening, citing people familiar with the matter.
The two measures are set to be announced by the end of the week, as well as are intended to counter Beijing’s Made in China 2025 — a Chinese initiative to be a global leader in technology.
The Treasury Department is actually drawing up rules to block companies with at least 25 percent Chinese ownership by buying companies involved in “industrially significant technology,” the WSJ said.
Reuters confirmed the curbs on Chinese investment into such technology. The ownership threshold may change before the announcement on Friday, Reuters reported, citing a government official briefed on the matter.
The National Security Council as well as the Commerce Department are also putting together plans for tighter export controls of which will not allow “industrially significant technology” to be exported to China, the paper added.
U.S. stock futures fell more than 0.5 percent in Asian trade on Monday after the WSJ report.
The White House as well as the Treasury Department did not immediately respond to a request for comment sent outside of regular office hours.
Trade tensions between the globe’s two economies have been escalating inside the last few weeks.
Tariffs on an initial list of goods worth some $34 billion are anticipated to kick in on July 6. China has announced retaliatory measures on U.S. imports.
On June 15, the Trump administration announced of which the item would certainly impose a 25 percent tariff on up to $50 billion of Chinese products. as well as then, on June 18, Trump said he had requested of which the United States Trade Representative identify $0 billion worth of Chinese goods for potential additional tariffs at a rate of 10 percent.
China’s Commerce Ministry responded by saying the item would certainly take counter measures if the U.S. publishes an extra tariffs list.
Read about President Donald Trump’s fresh plans to restrict Chinese investment as well as technology exports to China inside the Wall Street Journal.