The United States is planning to block companies with at least 25 percent Chinese ownership from buying local companies deemed to have “industrially significant technology,” US government sources said on Sunday.
According to a US government official, the Chinese ownership threshold may change before Friday, when the restrictions will be announced.
The move is yet another episode in the Trump-led trade conflict with the Asian country, whose impact is expected to ripple through the global economy.
On July 6, the US will impose tariffs on USD 34 billion, part of a potential total of USD 450 billion total, over complaints that China is misappropriating US technology by means of joint venture rules and other policies.
The Treasury investment restrictions are expected to target key sectors, such as those the Asian superpower is planning to develop as part of its Made in China 2025 program. The program’s objectives include that of boosting the country’s capabilities in IT, aerospace, pharmaceuticals, marine engineering, robotics, advanced energy vehicles and more.
According to the Wall Street Journal, quoted by Reuters, the US National Security Council and the Commerce Department were proposing “enhanced” export checks to prevent that technologies that could be used by China are exported from the US.
The Treasury, Commerce Department and the White House did not respond to requests to comment sent by Reuters.