The United States plans to stop China by buying US companies

A new measure to be implemented by the US Treasury Department could further widen the growing gap between the United States and China with respect to their trading relationships.

According to a Sunday Wall Street Journal report, the Treasury plans to introduce new restrictions on the Chinese ownership of US technology companies, which would be tantamount to banning Chinese companies from buying American companies.

If implemented, the new proposals would essentially block companies that own 25% or more of Chinese ownership by buying US companies involved in what the newspaper describes as "technology of industrial importance." The ultimate limit point for the property has not been decided, and could be higher or lower, it is reported.

"The president has clearly expressed his desire to protect American technology," said Secretary of Commerce Wilbur Ross in a statement released on Sunday. "All possibilities that would better protect US technology, including potential changes in export controls, are being revised."

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The new borders, designed to protect US intellectual property – a Trump commercial adviser, Peter Navarro, described last week as "the jewels of technology" of the country – would probably be created by a law called the International Emergency Economic Powers Act. 1977 Known as the IEEPA, the law gives the president extraordinary powers in times of "unusual and extraordinary threat" to the US economy.

The proposed new restrictions on Chinese property come at a time when the United States and China are already involved in a growing trade dispute, following the lifting of tariffs by the Trump administration on hundreds of billions of dollars of goods.

China has announced tariffs of $ 50 billion worth of imports from the United States last week in response to Trump's tariffs on Chinese imports, which were announced earlier this month.

Trump also threatened to impose tariffs on the European automotive sector, marking a new major step in the global trade conflict under development.

Trump, in May, had ordered the Department of Commerce to launch an investigation into imported automobiles, similar to the procedure that led to recently applied tariffs on steel and aluminum imports. While the results of this survey are still far away, Trump has raised the specter of tariffs on Twitter.

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"On the basis of tariff and trade barriers long placed on the United States and large companies and workers of the European Union, if these tariffs and barriers are not soon broken and removed, we will impose a tariff of 20 % on all their cars. "Trump tweeted last Friday." Build them here! "

You can read the full story of the Wall Street Journal about the new rules offered here.