Chinese tech investment in US is next target in Trump's crackdown: Reports
WASHINGTON: President Donald Trump is set to announce new measures this week to target growing Chinese investment in key technologies in the US, according to media reports, which could further escalate the trade war between the world's two largest economies.
The measures are part of the same broad US move to confront Beijing over its unfair trade practices as the tariffs on $50 billion of Chinese goods that the Trump administration detailed earlier this month, the reports said.
China has vowed to strike back in equal measure against the tariffs , the first wave of which are due to take effect July 6.
President Trump plans to ratchet commercial tensions higher by barring many Chinese companies from investing in US technology firms, and by blocking additional technology exports to Beijing, The Wall Street Journal reported, quoting people familiar with administration's plans.
The twin initiatives, set to be announced by the end of the week, are designed to prevent Beijing from moving ahead with plans outlined in its 'Made in China 2025' report to become a global leader in 10 broad areas of technology, including information technology, aerospace, electric vehicles and biotechnology, it said.
The Treasury Department is crafting rules that would block firms with at least 25 per cent Chinese ownership from buying companies involved in what the White House calls "industrially significant technology."
The White House has said previously that details of the investment restrictions, as well as "enhanced export controls" limiting Chinese acquisition of US technology, will be announced by June 30.
The possible restrictions of Chinese investments in the US come at a time of rapidly declining Chinese investment in the US. It plunged more than 90 per cent in the first five months of 2018 compared with the same period a year earlier, CNN quoted a report last week by Rhodium Group, a research firm that tracks Chinese foreign investment.
Rhodium linked the sharp drop to tougher scrutiny of Chinese acquisitions by US regulators and China's own restrictions on outbound investment.
Under the Trump administration, Chinese-backed deals have come under more aggressive scrutiny from the Committee on Foreign Investment in the United States (CFIUS), an inter-agency panel chaired by the Treasury Department.
The committee vets certain deals that could give a foreign investor control of a US business for national security risks.
Chinese investments in the US tech startups had totaled $2.3 billion in 2014, according to the economic research firm CB Insights. Such investments zoomed to $9.9 billion in 2015 but witnessed a dip in 2016, the Politico magazine reported last month.
But analysts say China's appetite to buy US firms and technology is still strong. In 2017, there were 165 Chinese-backed deals closed with American startups, only 12 per cent less than the 2015 peak, the report said.
Last week, the US Senate defied President Donald Trump by voting to overrule his administration's deal with Chinese telecom firm ZTE and reimpose a ban on hi-tech chip sales to the company.
The White House and Congress have been at odds over the ZTE, which makes smartphones and is China's second largest manufacturer of telecom equipment.
ZTE was on life support since Washington said it had banned US companies from selling crucial hardware and software components to the Chinese firm for seven years.
US officials imposed the ban because of what they said were false statements by the firm over actions it claimed to have taken regarding the illegal sale of goods to Iran and North Korea. ZTE pleaded guilty to those charges in March last year and was hit with whopping fine of $1.2 billion.
Earlier this month the Trump administration gave ZTE a lifeline by easing the sanctions in exchange for a further $1.4 billion penalty.
Several US lawmakers have criticised the Trump administration's deal to save ZTE. They were unhappy that the company, which they see as a national security issue, was being used as a bargaining chip in complicated trade negotiations with China.
原创翻译：三泰虎 http://jblasi.com/45424.html 译者：Joyceliu
Anil-4 days ago
Trump maybe right in imposing on Chinese investments in technology sector as technology can be used by Chinese to beat US which is at present leader in technology skills .
Sridhar-4 days ago
like modi, the Americans have their strong leader
ashish kumar-LOCATION-4 days ago
chinas loan to world bank is 2.9 trillion $ and chinas sale has dipped by 28 % . if this all words which are predicted by trump comes true then most happy persons will be from india and every true indian wants to see china down the line
Rajeev S-Jhumri Talaiyya-4 days ago-Follow
I usually don''t agree with Trump and his supporters racist agenda but I fully support his actions against China.
Biranchi Narayan Acharya
Biranchi Narayan-Cuttack-4 days ago-Follow
I don't think USA can really check China. Technology can't be blocked. America's sanctions stopped India getting cryogenic engines from Russia. Result was that India able to manufacture own cryogenic engines using indigenous
Asokan Andy-4 days ago-Follow
Trump is keeping his promises , one after another
Gabbar Is Back
Gabbar Is-Mumbai-4 days ago-Follow
US is selfish. But China is very very selfish & hypocrite. So support US in this case.
Rajan Rajan-4 days ago-Follow
Sir RG Khan highly condemns this.he says in 10 months bjp no more.chinese are fully welcome in india
Laxminarayan-4 days ago-Follow
left China and USA use Indian goods @tech
Nation-4 days ago-Follow
Trade war between America & China is like Indian & Pakistan word war.
Anonymous-bangalore-4 days ago-Follow
Great news .. at someone stepped up and asked question against Chinese unethical practice regarding intellectual rights.
Satyendra N Dhanda
Satyendra N Dhanda-4 days ago-Follow
China has mellowed these days is mostly because of fear of US retaliatory action other wise Chine would have been on the neck of all its neighbor-- from Vietnam to Indonesia to India
4 days ago-Follow
P I G H U N T E R
P I G H U N T E-Ahmedabad-4 days ago-Follow
This trade war will benefit India for sure.
Sameer Sameer-4 days ago-Follow
China thinks they are the only smart present in the world, whatever is said about Trump but every one knows that he is a true business man and he always tries to enter in a profitable trade.
Sarab Johar-4 days ago-Follow
Coming months may be interesting.....
Bambam-4 days ago-Follow
I think trump is very intelligent man. He calls spade for spade. China will lose on high end technology.
Pramod Mishra-4 days ago-Follow
US and China showing muscle to each other and the time comes for India
Mat-4 days ago-Follow
Trump stupidity can''t beat Chinese snartness
Brightsun-4 days ago-Follow
Every idiot comes up with a brilliant idea of sorting out China and Trump is one of them .
Ajay-4 days ago-Follow
Trump has now intestified his attacks on China ,chinese tech investment in US is his next target which is definitely going to hurt the chinese very badly
Gautam-4 days ago-Follow
trump is a big fool in front of the Chinesegovernment .
K P Pandey
K P Pandey-4 days ago-Follow
The while world will go against China
Sarada P Samantaray
Sarada P Samantaray-Mumbai-4 days ago-Follow
the bilateral fight between US and China is getting bitter and bitter day by day!
Abhaykumar-Akola-4 days ago-Follow
India is also doing same against China.
Muchhad-world-4 days ago-Follow
KONFUCIUS KEN-4 days ago-Follow
It is just a case of trade and business barter. Critical ( available) technology has adequately been transferred and improved upon by the Chinese in the last two decades. President Trump probably is concenterating on technology being transferred ( future) from military to civil domain after gestational security lock in period.
Sriram Balu-Chennai-4 days ago-Follow
Both trump and China will target India first.
Sumit Khandelwal-4 days ago-Follow
It''s time India could benefit.
Marimuthu Kaliyamoorthy-4 days ago-Follow
TRADE WAR IS AVOIDABLE.
Da Da-4 days ago-Follow
One one must accept fact than US President Trump, though whimsical or erratic still he is capable of challenging China in his own terms.