USA to curb Chinese investment in tech firms

Chinese President Xi Jinping

Chinese President Xi Jinping

He has since escalated that to threats of tariffs on billions more dollars of goods imported into the U.S., causing threats of retaliation from China.

The Treasury Department is crafting rules that would block firms with at least 25% Chinese ownership from buying companies involved in what the White House calls "industrially significant technology".

But it has been worse in China as this chart of the SSE Index of the Shanghai stock market shows. The Philadelphia Semiconductor index dropped 3.1 percent as shares of chipmakers, which derive much of their revenue from China, took a hit.

The Canadian dollar was down against its USA counterpart, trading at 0.7518 cents US.

In a concrete outcome of the tit-for-tat trade blows, USA motorbike maker Harley-Davidson said late Monday it planned to shift some manufacturing overseas to avoid retaliatory European tariffs imposed last week. The comments, made at a press briefing with European Commission Vice President Jyrki Katainen, come as both sides prepare to face off against US President Donald Trump's tariff threats.

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

European Union import tariffs force Harley to rethink
In January, it said it would consolidate its Kansas City, Missouri, plant into its York, Pennsylvania, facility. Wisconsin-based Harley-Davidson has assembly plants in Australia, Brazil, India and Thailand.

‘Game Of Thrones’ Stars Kit Harington And Rose Leslie Are Married!
Leslie wore a flowing ivory gown and veil for the ceremony, while Harington was dressed in a morning suit. The bride arrived at the church on Saturday with her father, Sebastian Arbuthnot-Leslie.

Toronto Pride Parade takes place amid tensions between LGBTQ community, police
The event commemorates the riots that erupted in response to a police raid at a NY gay bar called the Stonewall Inn in June 1969. March organizers plan to honor community heroes, including Parkland, Florida, school shooting survivor Emma Gonzales.

Last month, Mnuchin said a trade war with China was "on hold" after officials of the world's two largest economies held talks in Beijing that were focused on opening more sectors of China's economy and increasing purchases of American goods.

A survey released last week by the European Union Chamber of Commerce in China showed that a slim majority of members thought foreign-invested companies are treated unfairly, and nearly two-thirds see a lack of reciprocity between the access to China's markets that they get, and the access Chinese companies get to Europe.

Xi was speaking Thursday to the Global CEO Council, a China-organised group of roughly 20 chief executives from mostly Western multinational companies such as Goldman Sachs and Volkswagen, the Journal said. "The market does not like uncertainty, and a trade war is something that is hard, if not impossible, to handicap".

A bill to make CFIUS reviews even tougher is making its way through Congress.

Following reports from various media outlets on Monday that the USA will further crack down on China's technology Treasury Secretary Steven Mnuchin took to Twitter to clarify what the administration's moves will be.

The tech-heavy Nasdaq composite fell 2.8 per cent to 7,480.04 points, while the Dow Jones industrial average slumped 1.9 per cent or 436 points to 24,117.58 points.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.