Trump backs off imposing China investment limits and punts the issue over to Congress
Trump calls on Congress to review an existing process to impose limits on Chinese investment in American tech companies
The decision follows intense internal battles over the issue
Treasury Secretary Steven Mnuchin denied the administration had softened its stance after seeing the turbulence in financial markets
The administration's move is likely to be viewed as a conciliatory effort to lessen the risks of a full-blown trade war with China
President Donald Trump is shifting away from a proposal to impose limits on Chinese investment in American technology companies and high-tech exports to China.
Instead, the president is calling on Congress to enhance an existing review process.
The announcement Wednesday followed intense internal battles over the issue and published reports of impending bans on Chinese investment that had sent financial markets into a nose dive at the beginning of the week.
Instead of immediate bans on Chinese investment designed to protect sensitive U.S. technology industries, the administration said it would work with Congress to pass a bill that will provide 'enhancements' to the foreign investment reviews under the existing Committee on Foreign Investment in the United States.
Treasury Secretary Steven Mnuchin, who chairs the investment committee, rejected the idea that the administration had softened its stance after seeing the turbulence in financial markets. Published reports has said the administration was about to embark on a far tougher approach.
'For those who want to say this is being weak on China, the answer is no,' Mnuchin told reporters at briefing on the decision. 'I don't think this is a question of weaker or stronger. ... The question was: What were the appropriate tools?'
Mnuchin noted that the House approved by a lopsided vote legislation to enhance the powers of the committee that decides whether foreign investment would pose a security risk to the United States. He said if this measure does not ultimately make it through Congress, the administration would return to a review of the powers at its disposal to protect sensitive U.S. technology.
The administration's move, after weeks of escalating tensions between the world's two largest economies, was likely to be viewed as a conciliatory effort to lessen the risks of a full-blown trade war.
The comments Wednesday stood in contrast to a White House statement on May 29 that said 'the United States will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology.'
That announcement said that controls would be announced by June 30 and would 'be implemented shortly thereafter.'
Asked about this apparent change in position, Mnuchin said, 'It is not a question of whether we are focusing on China or we are not focusing on China' but rather an issue of using all available tools to deal with US-China trade disputes.
Mnuchin also said that recent adverse market reactions to rising trade tensions had not played a role in the president's decision.
President Donald Trump on Tuesday pushed back on recent reports that the U.S. was preparing the investment restrictions. He said the interagency investment committee, known as CFIUS, provided a lot of ways to protect technology.
'We have to protect these companies. We can't let people steal their technology,' Trump said Tuesday.
The House on Tuesday approved a bill that would strengthen the CFIUS law and that bill was expected to be considered as part of a joint House-Senate conference committee reviewing a Senate-approved defense policy bill.
The debate inside the administration on how to deal with China had reportedly become intense between hardliners urging for a tough approach with China and moderates led by Mnuchin who argued for a less confrontational approach.
Mnuchin told reporters that these differences had been overblown and there was unanimous backing for the approach being unveiled Wednesday when it was presented to the president for his final approval at a White House meeting the day before.
'At the end of the day, all the president's advisers were 100 percent unanimous when we sat down with the president,' Mnuchin said.
原创翻译：三泰虎 http://jblasi.com/45411.html 译者：Jessica.Wu
deadmantalking, Vamo, United States, about 5 hours ago
He just sent it to purgatory. It will sit there a very long time before it is ever addressed
Independent Dude, Tamriel, United States, 16 minutes ago
Harley made him do it!
Bird Brain, Surrey, 38 minutes ago
As a democratic country the President of the United States has to respond to voters' reaction to the possibility and effect of a prolong trade war with China. China, without voters to worry about, could withstand a trade war longer.
Libertycan, West Vancouver, Canada, about an hour ago
It's not an investment. It's bribing owners to hand over technology they developed for the use of the US military. It's got it stop.
turpin, teignmouth, United Kingdom, about 3 hours ago
Like fonzy trump can't admit he is wrong
Trojanapolis, There, United States, about 5 hours ago
This is why the uniformed do not understand how stupid Trumps actions toward China is. China hold a lot of America's debt, well over what Trump is crowing about in tariffs. China could simply say...okay Donald, if you want to play hardball, we are cashing in our debt chips we hold for your country. That would be a HUGE blow to the United States economy!
FakeNewsJim, Chicago, United States, about 3 hours ago
Having a massively imbalanced trade deficit will hurt us more than worrying about debt. Concerns over technology transfer are real as well.
molenhole, Brum, United Kingdom, about 4 hours ago
Around half of the National debt is owned by Americans.
Moderate6, Brisbane, Australia, about 5 hours ago
Poor Donnie, he's failing at everything. Not to worry he should be locked up very soon.
Stuttgart, Melbourne, about 6 hours ago
Weak, cowardly Trump has finally realised what a mess he's made of everything so now tries to hand responsibility to Congress to fix his mistakes.
SpikedDurian, Sunny Side Up, Singapore, about 7 hours ago
The time for such policies has passed. It's not the 80s anymore. China is already developing domestic technologies e.g. they design and make their own silicon, planes etc. All these policies are going to do is accelerate their progress and take business opportunities away from American companies.
Son of Nomad, NE Atlantic coast, United States, about 7 hours ago
Looks like Trump saw the falling stock market
inneedoftherapy, sarasota, United States, 8 hours ago
Can't or won't make a decision, so gives it to Congress and whatever solution they come up with, he will declare to be wrong ...
SinisterMinister, London , United Kingdom, 8 hours ago
Trump is pathetic
K L Brown, CHARLOTTE, United States, 9 hours ago
Donnie Doll Hands ALWAYS backs down!
Lotsofshoes, Nyc, United States, 10 hours ago
Because it would hurt his daughters business.
Tyrconnell, Las Vegas, United States, 11 hours ago
Canadian steel and German cars = Threat to National Security. China buying it's way into dual-use tech companies, no big deal...
Michael of NJ, Princeton, United States, 11 hours ago
And Congress will promptly scuttle the idea.
N5o5No5, Bonn, Germany, 11 hours ago
LivingLogically, San Diego, United States, 11 hours ago
It's like being blindfolded and just throwing darts and seeing if anyone hit the target. Lol
du Vallon, East Coast, United States, 11 hours ago
SO he has no problem imposing sanctions on our longest and most staunch allies... but he gives the dictators that are our biggest threats a free pass. Note to Europe and Canada. If you give Ivanka's company 135 exclusive patents, you pretty much escape all sanctions out of Trump... just saying... because it's true.
qqqqqqqq1, nowhere, United States, 11 hours ago
Trump can't afford to alienate his dictatorship friends too much.
Chaquito Guerilla, Havana, Cuba, 11 hours ago
Donkey Donald single-handedly reduced the Government of the United States of America into a limping one-man band. Competent members of his entourage are splat like flies; they are appointed and fired faster than staff members at your local McDonalds. The present POTUS has no political experience, lacks a moral compass and even basic diplomatic skills, has no intellect to speak of, no human empathy, is a shameless narcissist and hate the free press. What the US needs now is a fast regime change. Replace the buffoon by someone with intellect and vision.
Youraidiot53, Temple, United States, 11 hours ago
John Marshall, Galway, Ireland, 12 hours ago
President Trump is doing diplomacy like a BOSS !!
FooFooB, Middlebury, 19 hours ago
Count down to more trademarks agreed to in China for Trump and Ivanka. How many did they already get? 51. That's right. He starts a trade war with our friendlies, but nothing with China and he and Ivanka get 51 trademarks approved. Don't look behind the curtain folks.
Richard Groff, Bradenton, United States, 19 hours ago
"...Trump backs off..." Otherwise known as "caving," a common occurrence among loud mouth self described."negotiators."
FooFooB, Middlebury, 19 hours ago
My guess it has something to do with the 51 Trademarks he and Ivanka have received since he became President.
ooiocoo, Liverpool Toronto Florida, United Kingdom, 19 hours ago
the deal was already made; now they are just doing the public show.
nikko, Sandanski, Bulgaria, about an hour ago
Much talk about the USA,s National Debt and who owns the biggest slice and more important what the implications are for those holding the debt should they decide to call it in. We have a trillion National Debt Pile in the UK and we should be concerned or( Brexiters and Mrs. May should be) if our creditors call time on our debt. If our creditors should take umbrage about our economic policies brought about by Brexit and leaving the financial security of the EU the turmoil that could ensue would not bear thinking about, going against the rest of the world would certainly be a financial position we could never recover from.