Trump planning new curbs on Chinese investment in the US

Trump planning new curbs on Chinese investment in the US

Trump planning new curbs on Chinese investment in the US

Today the trade war gets serious and Trump fans have to know that their beloved leader has brought this on.

Navarro, appearing on CNBC at 3 p.m., appeared to reverse the course set by Mnuchin-and with it the market. The S&P 500 dropped 1.4% to 2717.07. The bloc imposed tariffs on $3.3 billion of American products Friday in response to U.S. barriers on imports of aluminium and steel, triggering threats of further tariffs on European cars from Trump. US President Donald has been complaining since his election campaign that Beijing is taking advantage of the US in terms of trade, while lawmakers have frequently raised concerns over US technology stolen by China.

Among tech companies whose shares have had double-digit percentage gains this year, Netflix fell 6.7%, Facebook lost 3.7%, was down 3.6% and Nvidia shed 5.5%.

It also said it would unveil a revised list of Chinese goods for tariffs, which it did on June 15.

A complicating factor for global investors is that the U.S. economy is expanding at a faster rate than Europe and Japan, while emerging markets such as China are weakening.

But on May 29, the White House announced that the Trump administration would proceed with a 25 percent tariff on $50 billion of Chinese goods and China-specific investment restrictions. The EU has long blamed China for flooding its markets with cheap steel, and has imposed its own steep tariffs on Beijing.

China and the European Union vowed to oppose trade protectionism and unilateralism, saying those actions could push the world into recession in an apparent rebuke to the US. "The market is starting to price in that the tariffs will start to become real".

"We've moved away from the synchronous global expansion", says Principal Global Investors chief global economist Bob Baur, who believes global growth peaked around February of this year but that "the United States is still gaining momentum".

The administration could expand existing authorities for the Committee on Foreign Investment in the United States, or CFIUS, which is led by the Treasury and which already has blocked some Chinese investments in ports and semiconductors.

"I would not, on the investment side, be betting against the Treasury Department", Scissors said, noting that Treasury would control implementation of such rules.

Spokespersons for the Treasury, Commerce Department and the White House did not immediately respond to Reuters' requests for comment on the proposed restrictions. Trump administration officials have said they are considering the use of the 1977 International Emergency Economic Powers Act to impose new restrictions on China, an act widely used to freeze assets after the 9/11 attacks in 2001.

The Nasdaq Composite slumped 2.1% to 7532.01, its biggest one-day percentage decline since March, while the Dow Jones Industrial Average fell 328.09 points, or 1.3%, to 24,252.80.

Policymakers in China moved quickly to temper any potential economic drag from Beijing's dispute with the United States.

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