EU, China vow to uphold global trade order despite divisions

US to limit Chinese investment in American tech firms – report

US to limit Chinese investment in American tech firms – report

The U.S. would block Chinese companies from investing in U.S. technology companies, while restricting U.S. technology exports to China. "So this whole idea that there's going to be investment restrictions to the world, please, discount that", Navarro said.

Under the plan, the White House would use one of the most expansive legal tools available to declare China's investment in USA companies involved in technologies such as new-energy vehicles, robotics and aerospace a threat to economic and national security, according to eight people familiar with the plans.

US technology stocks were worst hit.

It also said it would unveil a revised list of Chinese goods for tariffs, which it did on June 15. Some U.S. steel and aluminium tariffs went into effect in April and additional tariffs begin in July.

As China steps up its engagement in Europe, the European Union, too, is working on measures to tighten screening of outside investments to protect critical technologies and infrastructure. Caterpillar stock lost 3.7 percent and Boeing fell 7.7 percent on Monday.

"All we're doing here with the president's trade policy is trying to defend our technology when it may be threatened".

U.S. Treasury Secretary Mnuchin has been reluctant to back steep tariffs on Chinese goods, fearing the impact on global supply chains.

The Trump administration is set to announce measures this week cracking down on Chinese investment in key technologies in the United States.

Separately, France and China also upgraded their bilateral trade relations this week, with Beijing promising to buy more French farm produce and continue talks over the purchase of billions of dollars worth of Airbus jets, according to Reuters.

Since June 17, a group of navy warships, including a Type 054A frigate and a Type 052C destroyer, have been conducting exercises near Taiwan, including in the Bashi Channel and the Taiwan Strait, said 81.cn, an official publication of the Chinese army. "The market is starting to price in that the tariffs will start to become real". "The market does not like uncertainty, and a trade war is something that is hard, if not impossible, to handicap". "It's bad for growth", he said.

Europe and China will form a group aimed at updating global trade rules to address technology policy, government subsidies and other emerging complaints in a bid to preserve support for worldwide commerce, the vice president of the European Union's governing body said Monday. Secretary of State Mike Pompeo was in Beijing to brief Chinese leaders on the visit in the days after the meeting.

Meanwhile, later this week, the Treasury Department is due to unveil a proposal on investment and export restrictions.

In addition, the Ministry of Commerce and the national security Council suggest to strengthen control over the procurement of China's high-tech electronics.

The Wall Street Journal reported that the investment restrictions could apply to deals involving entities in which Chinese investors hold less than 25% "if the administration determines that Chinese investors could obtain the technology through board seats, licensing agreements or other measures".

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