The White House may introduce new measures this week to make it harder for China to import to, and invest in, the US.
The news: The Wall Street Journal says America will introduce “tariffs on imports [aimed at China] worth at least $30 billion” tomorrow. It may also propose “possible investment restrictions” on Chinese firms looking to acquire stakes in US companies.
Backstory: Rumors have swirled that Trump will extend tariffs to new goods, including consumer electronics. And since the US government nixed several high-profile tech buyouts over national security concerns—including Broadcom’s bid for Qualcomm—lawmakers have reportedly been mulling how best to clamp down on Chinese acquisitions of US firms.
Why it matters: The Journal says the Trump administration sees Chinese investments in US tech as a means through which the nation acquires intellectual property—to use for defense applications, or to edge forward as a tech power. The new measures would be intended to curb that practice. But as Gadfly has noted, they could harm the success of US tech firms, as well as heightening already-tense international relations.
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