United States may use emergency law against China investments, says Bloomberg

United States may use emergency law against China investments, says Bloomberg

Trade tensions between the U.S. and China have escalated in the last several weeks with the Trump administration's planned tariffs on $50 billion worth of Chinese imports and Beijing's announcement of counter-duties. If the policy is global but only really effects China, then what's the difference? The forthcoming restrictions would apply "to all countries that are trying to steal our technology", he said.

Tariffs on $34 billion worth of Chinese goods, the first of a potential total of $450 billion, are due to take effect on July 6 over United States complaints that China is misappropriating U.S. technology through joint venture rules and other policies.

By mid-afternoon, the S&P 500 was down 1.83%, and the Nasdaq had fallen 2.33%.

However, his confusing interview to CNBC did little to clarify the situation, as he said the administration was "not singling out China" but also that Treasury would release a report on Friday on the issue of investment restrictions on China.

However, Treasury Secretary Steven Mnuchin denied the report saying any measures would apply to all countries stealing U.S. technology. CFIUS reviews-or the threat of reviews-have largely halted Chinese purchases of USA semiconductor companies.

He said markets have misunderstood the president's plans.

Other companies likely to feel the impact of recent US tariffs on imported steel which raise costs for manufacturers, and the counter-measures by China which may hit USA exports, include heavy machinery maker Caterpillar and aircraft maker Boeing.


The Dow, a narrow gauge of 30 USA stocks, has declined in nine of the past 10 trading days - a remarkably long losing streak that adds up to a 4.6 per cent decline.

Large technology shares also had a bad day, with Amazon losing 3.1 per cent, Facebook and Google-parent Alphabet falling 2.7 per cent, and Netflix down 6.5 per cent.

The EU riposted last week against emblematic American exports in response to United States tariffs on steel and aluminium. Goods assembled and exported in one country often depend on components manufactured in another, after being designed in yet a third country, making the national trade deficit focused on by President Trump an unreliable guide.

Bloomberg updated the article after the tweet to note, despite the Treasury secretary's insistence that China was not the target of the investment curbs, the president's memorandum ordering him to draft the limits specifically cited China.

Foreign investments already must pass interagency review under the Committee on Foreign Investment in the USA, to see if they violate national security.

Spokespersons for the Treasury, Commerce Department and the White House did not immediately respond to Reuters' requests for comment on the proposed restrictions.

Policymakers in China moved quickly to temper any potential economic drag from Beijing's dispute with the United States.

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