U.S. to limit Chinese investment in American tech firms

U.S. to limit Chinese investment in American tech firms

U.S. to limit Chinese investment in American tech firms

Navarro insisted that the administration's trade policy is "bullish" for USA stocks and said that the market was overreacting to reports that the administration would restrict foreign investment by China and other countries.

China and the European Union firmly oppose trade unilateralism and protectionism and think these actions may bring recession and turbulence to the global economy, says Chinese vice premier Liu He. "Statement will be out not specific to China but to all countries that are trying to steal our technology", Mnuchin said on Twitter, noting he was responding for Trump.

The EU and China have called Trump's actions "totally unacceptable" and an "act of extreme pressure and blackmail" while retaliating with tariffs of their own on billions of dollars' worth of U.S. goods.

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

United States Secretary of the Treasury Steven Mnuchin holds a news conference after the G7 Finance Ministers Summit in Whistler, British Columbia, Canada, June 2, 2018. CFIUS reviews-or the threat of reviews-have largely halted Chinese purchases of US semiconductor companies.

Harley-Davidson, the dominant player in the USA motorcycle market said on Monday it would not pass on the cost of European Union tariffs to customers and instead focus on shifting some US production to other countries. Amazon shares fell more than 3.5%, while shares of Google and Facebook fell 3.67% and 3.77%, respectively.

USA technology stocks were worst hit.

The US is due to impose tariffs on $34bn of Chinese imports from July 6, and Trump has threatened to impose levies on another $200bn of Chinese goods.

The pan-European FTSEurofirst 300 index .FTEU3 lost 2.19 percent and MSCI's gauge of stocks across the globe.MIWD00000PUS shed 1.41 percent. - China 2025 - Trump has blamed past United States administrations for being soft on China and allowing the country to become dominant in manufacturing, including in products like steel and aluminum, which are subject to USA tariffs, and for failing to protect sensitive technologies.

US and Canadian stocks suffered their worst one-day decline in several months on Monday, amid rising global trade tensions and their potential impact on the world economy.

In addition, the National Security Council and the Commerce Department are putting together plans for "enhanced" export controls, created to keep such technologies from being shipped to China, said the people familiar with the proposals.

Airbus could stand to benefit if China's looming trade war with the United States prompts Beijing to favour the European aerospace giant over U.S. rival Boeing.

Related news