Trump Readies Caps on Chinese Investments

President Donald Trump is readying a new round of salvos against China that would limit the ability of Chinese companies to invest in U.S. tech firms and block exports of American technology.

The proposed new sanctions are likely to be unveiled at the end of this week, according to Bloomberg News. It says the measures will be justified in terms of defending economic and national security. The White House used a similar argument to defend last month’s tariffs on foreign aluminum and steel, and for threatened taxes on imported cars.

Treasury Secretary Steven Mnuchin dismisses as “fake news” reports that the new sanctions specifically target China. He insists the measures address all countries that are “trying to steal our technology.” But Bloomberg notes that the presidential memorandum in March that ordered Mnuchin to draft the proposals states the restrictions aim at “Chinese persons and entities” that seek American technologies.

Sources tell Bloomberg that Mnuchin will propose that the new sanctions be administered through a new government panel called the Committee on Foreign Investments in the U.S. Two Bloomberg sources say one option under review would create two processes for reviewing foreign investments, one of them tailored specifically for Chinese investments.