Trump to announce crack down on Chinese tech investment

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Washington, June 25 (IANS) US President Donald Trump’s administration is set to announce measures this week cracking down on Chinese investment in key technologies in America, a media report said on Monday.

The move is expected to increase tensions in the intensifying trade clash between Washington and Beijing, the CNN report said.

The planned US restrictions on Chinese investments in “industrially significant technology” are in large part fuelled by American concerns about “Made in China 2025” — Beijing’s plan to boost industries like robotics, electric cars and aerospace with the aim of becoming a global leader in those areas.

The measures are set to include rules that would bar firms with at least 25 per cent Chinese ownership from buying companies involved in technology deemed significant by the White House, according to a report late Sunday by The Wall Street Journal.

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The limit on Chinese ownership could end up being even lower, it added.

It remains unclear exactly how the Trump administration will define what technology is “industrially significant”.

Neither the Treasury Department, which is drawing up the rules, and the White House comment on the development, CNN reported.

The measures are part of the same broad US move to confront Beijing over its trade practices as the tariffs on $50 billion of Chinese goods that the Trump administration detailed earlier this month.

Beijing has vowed to strike back in equal measure against the tariffs, the first wave of which will take effect on July 6.

The US government says the flurry of measures against China were a response to the theft of American intellectual property and pressure US companies face to hand over technology to Chinese firms in order to do business in the country.

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Chinese officials have repeatedly rejected the US allegations, accusing Washington of making unilateral and protectionist moves.

–IANS

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