US may invoke emergency law to crack down on Chinese technology investments
US treasury officials are reportedly working to identify tech sectors in which Chinese companies would be banned from investing, such as semiconductors and 5G wireless communications
The Trump administration is considering a crackdown on Chinese investments in technologies the US considers sensitive by invoking a law reserved for national emergencies, among other options, according to people familiar with the matter.
Treasury Department officials are working on plans to identify technology sectors in which Chinese companies would be banned from investing, including semiconductors and so-called 5G wireless communications, according to four people with knowledge of the proposal, who spoke on the condition of anonymity.
The investment curbs would be the latest step in US President Donald Trump’s plan to punish China for what the US sees as violations of American intellectual-property rights.
The president asked Treasury Secretary Steven Mnuchin to consider investment restrictions on Chinese firms after the administration released the results of its investigation into China’s IP practices last week.
While investors have so far focused on Trump’s plan to impose tariffs on Chinese imports, new restrictions could deepen a slowdown in Chinese investments in the US since Trump took office, hurting the ability of American companies to raise capital and holding down valuations.