www.varchev.com

Trade tensions between the world’s biggest economies have been escalating

President Donald Trump plans to bar many Chinese companies from investing in U.S. tech and 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, and are intended to counter Beijing’s Made in China 2025 — a Chinese initiative to be a global leader in technology.

The Treasury Department is drawing up rules to block companies with at least 25 percent Chinese ownership from 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 and the Commerce Department are also putting together plans for tighter export controls that will not allow “industrially significant technology” to be exported to China, the paper added.

The White House and the Treasury Department did not immediately respond to a request for comment sent outside of regular office hours.

Trade tensions between the world’s two economies have been escalating in the last few weeks.

Tariffs on an initial list of goods worth some $34 billion are expected to kick in on July 6. China has announced retaliatory measures on U.S. imports.

On June 15, the Trump administration announced that it would impose a 25 percent tariff on up to $50 billion of Chinese products. And then, on June 18, Trump said he had requested that the United States Trade Representative identify $200 billion worth of Chinese goods for potential additional tariffs at a rate of 10 percent.

China’s Commerce Ministry responded by saying it would take counter measures if the U.S. publishes an additional tariffs list.


 Trader Georgi Bozhidarov


Read more:
RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance