President Donald Trump has announced the details of a plan to crack down on Chinese investment in US technology companies, and the final results were weaker than expected.
After fears that Trump would introduce harsh measures to curb Chinese investment in US-based technology companies, the US president instead decided to use less stringent methods to curb the practice, including the expanded use of the Committee on Foreign Investment in the United States.
In all, the measures the administration announced were less harsh than proposals floated earlier in the week, providing relief to markets that continue to worry about the threat of a global trade war.
More trade controversy erupted this week after news reports Monday that President Donald Trump was looking to step up efforts to safeguard U.S. technology that would include blocking the purchase by companies with heavy Chinese ownership from buying American firms. Statements from the White House generated fears the restrictions would become global.
The administration has sought to stop Chinese companies from allegedly stealing intellectual property, and intends to institute a series of tariffs while the issue is addressed.
Markets had worried that the U.S. was going to institute sweeping bans that might stifle investment and escalate a global trade war.
While the statements Wednesday pointed to a less restrictive environment than markets had feared, Mnuchin said the U.S. nevertheless will take a tough stand when it comes to protecting technology.
Trader Georgi Bozhidarov