The White House’s new restrictions on Chinese tech investment in the U. S. were a breath of fresh air for the markets.
After several days of worried speculation by the markets, it sounds like the White House is easing up on China a bit. Reports earlier this week that President Donald Trump would introduce measures to stop Chinese investments in U. S. tech companies were shaken off by a Wednesday announcement that softer regulations would go into place instead.
The Senate has adopted changes to give the Committee on Foreign Investment (or CFIUS) more power rather than introduce sweeping new restrictions on Chinese investment in U. S. tech firms, according to CNBC. The Wall Street Journal reported Sunday that the White House was looking to block companies with more than 25 percent Chinese ownership from buying American tech companies.
U. S. restrictions on Chinese investments were looser than expected. US President Donald Trump (L) and China’s President Xi Jinping leave a business leaders event at the Great Hall of the People in Beijing on November 9,2017. Photo: Nicolas Asfouri/AFP/Getty Images
Instead, the CFIUS will now be able to block joint ventures, which it did not have the authority to do previously.
