White House tries to allay investor fears as stocks dip over planned restriction on Chinese investment in US technology
Stocks have been shaken as the US prepares a policy that will restrict investment by China and other countries in sensitive US technology
US President Donald Trump’s top trade adviser sought to tamp down market panic over the White House’s plans for investment restrictions against China by calling investors’ interpretations “a misunderstanding”.
The Dow Jones Industrial Average plummeted more than 400 points on Monday after Treasury Secretary Steven Mnuchin’s comments that investment restrictions would not be limited to China, “but to all countries that are trying to steal our technology”.
Mnuchin’s remark sparked concern among market participants that Washington’s looming trade war with Beijing might be fought on more international fronts.
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“There’s no plans to impose investment restrictions on any countries that are interfering in any way with our country. This is not the plan,” trade adviser Peter Navarro said in an interview with CNBC on Monday.
“All we have done with the 301 investigation is to investigate what China was doing with our particular country with respect to technology, and all our president has done was to direct the secretary of the Treasury to come back with an assessment of that, which is due at the end of this month,” Navarro said, referring to tariffs to be levied under Section 301 of the Trade Act of 1974.
“And that assessment does not include any other countries.”
Stocks pared losses after Navarro’s remarks, with the Dow Jones finishing 328 points lower, or 1.3 per cent