All the day’s economic and financial news, as shares are hit by Donald Trump’s latest salvo against China
- Trump to block Chinese firms from investing in US tech companies
- US could restrict tech exports to China too
- President also tells partners to drop tariffs, or else
- Asian markets fall 1%
Trump’s latest threat against China has hit European markets.
Shares are down across the region in early trading, with Britain’s FTSE 100 and Germany’s DAX both losing 0.6%.
In the latest escalation of the trade war Trump has decided to take aim at Chinese investments. A draft series of restrictions on inbound Chinese investments are due to be published later this week, in a move which could have great long-term consequences on the US – Sino economic relationship.
Once again details remain very sketchy, with the scope of such a measure still under discussion. It is now very difficult to get away from the fact that neither side has any intention of backing down in this game of economic “chicken”.
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The twin initiatives, set to be announced by the end of the week, are designed to prevent Beijing from moving ahead with plans outlined in its “made in China 2025” report to become a global leader in 10 broad areas of technology.
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.”
The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!