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United States plans limits on Chinese investment in USA technology firms

China and Europe warn trade war could trigger global recession

"Authorities around the world will see the secretary as someone to go to for a thoughtful, rational, reasonable conversation about challenges that we face mutually or changes in the business cycle or multi-lateral policy changes", said Tim Adams, a former Treasury undersecretary in the George W. Bush administration."They see him as something of a point of stability".

"Under the plan, the White House would use one of the most significant legal measures available to declare China's investment in United States companies involved in technologies, such as new-energy vehicles, robotics and aerospace, a threat to economic and national security", said Bloomberg.

This was reported by the Wall Street Journal, reports Interfax-Ukraine.

Technology stocks bore the brunt of the damage.

The pan-European FTSEurofirst 300 index .FTEU3 lost 2.19 percent and MSCI's gauge of stocks across the globe.MIWD00000PUS shed 1.41 percent.

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

Trump has already imposed tariffs of 25 percent on imported steel and 10 percent on aluminum. He suggested that the measures would be "not specific to China, but to all countries that are trying to steal our technology". At one point Monday, the Dow fell nearly 500 points.

"China-U.S. military exchanges are important to bilateral relations and have made continuous progress", Chinese foreign ministry spokesman Lu Kang told a regular news briefing Tuesday in Beijing. Goods assembled and exported in one country often depend on components manufactured in another, after being designed in yet a third country, making the national trade deficit focused on by President Trump an unreliable guide.

While the measures to protect America's "crown jewels", may help slow down China's advance, Triolo and Zenglein doubt whether it can be halted altogether, due to the billions of dollars being spent by the Beijing government to realize its ambitions.

Still, Trump needs Chinese President Xi Jinping's help to keep North Korea engaged with disarmament talks. "The market is starting to price in that the tariffs will start to become real. There are no winners from fighting a trade war", Li said. "It's bad for growth", he said.

"Given the size of China's economy, the demonstrable extent of its market-distorting policies, and China's stated intent to dominate the industries of the future, China's acts, policies, and practices of economic aggression now targeting the technologies and IP of the world threaten not only the US economy but also the global innovation system as a whole", the report said.

The bill would allow the Committee on Foreign Investment in the United States (CFIUS) to review transfers of minority interests in companies dealing with critical infrastructure or critical technology as opposed to full acquisitions.

Although the WSJ reported Trump's new strikes against China will be announced by the end of the week, Navarro denied the allegedly impending event.

The Treasury Department, which is drawing up the rules, and the White House did not return requests for comment outside of regular office hours.