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President Donald Trump on Tuesday endorsed the measured approach of US Treasury Secretary Steven Mnuchin, aimed at curtailing Chinese investment in US technology companies, saying that a merger review committee is strengthening could protect sensitive American technologies.
Trump, in remarks to reporters at the White House, said the approach would target all countries, not just China, echoing Mnuchin's comments Monday amid a fierce internal debate over restrictions investment to be unveiled Friday.
"This is not just about Chinese investment," Trump told reporters when he was asked about the plans of the administration.
Peter Navarro, Mnuchin and White House's trade adviser, sent contradictory signals on Monday on the investment restrictions imposed by Trump on May 29. Mnuchin said that they would apply to "all countries that are trying to steal our technology". focused specifically on China.
Restrictions are being developed to put pressure on China to respond to complaints from the administration that it has diverted US intellectual property through joint ventures, licensing policies unfair and state acquisitions of US technology companies.
Mnuchin would prefer to use new tools associated with pending legislation to improve the security reviews of transactions by the US Foreign Investment Committee (CFIUS), said some officials of the administration.
A government official told Reuters on Sunday that the Treasury was working on a proposal to ban acquisitions of US companies with "technology of industrial importance" by companies owning at least 25 percent of Chinese.
Asked about the pending restrictions at a White House meeting with Republican lawmakers on Tuesday, Trump said, "We have the world's biggest technology, people are copying it, and they are stealing, but we have them. great scientists, we have great brains and we must protect that and we will protect it and that is what we do.
"And that can be done by CFIUS, we have a lot of things to do and we are working on it," he said.
Before the meeting, Mnuchin was seen by reporters in the West Wing of the White House. A Treasury spokesperson did not respond to a request for comments from Reuters.
The US House of Representatives passed a law on Tuesday to strengthen the authority of CFIUS by a vote of 400-2, with many similarities to a bill passed by the Senate. Both versions would extend CFIUS reviews to minority stakes in US companies and investments that could reveal critical infrastructure information to foreign governments.
TRADE TENSIONS CAN CHANGE EDF POLICY
The intensification of Trump's list of trade disputes with China, the European Union, Canada, and Mexico has shown signs of influence on the Federal Reserve's policy on Tuesday. Atlanta Fed President Raphael Bostic said in Birmingham, Alta., That heightened tensions could lead him to oppose a fourth rate hike this year.
Trump said earlier on Twitter that his administration "was finishing" its study of tariffs on US car imports, suggesting that it would take action soon.
The Alliance of Automobile Manufacturers, a trade group, said it would file written comments in the study warning that a 25% tariff on imported vehicles would cost American consumers 45 billions of dollars a year, or $ 5,800 per vehicle.
Customs duties of 25 percent on an initial $ 34 billion of Chinese imports are expected to come into effect on July 6, and an additional $ 16 billion will be subject to a review process later this summer.
If China respects its vow to retaliate against tariffs on soybeans, cars and other US products, Trump has threatened to impose 10% tariffs on an additional $ 400 billion worth of Chinese goods.
A Reuters analysis of tariff schedules revealed that most of the Chinese products targeted up here are classified as intermediate goods or capital goods – avoiding a direct tax on voters – but many consumer goods have been taken in the net and will be targeted in the future rounds.
Trump also threatened Tuesday Harley-Davidson Inc. (HOG.N) with higher taxes if it proceeds with a plan to move production out of the United States to avoid EU retaliatory tariffs on motorcycles US.
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