Trump just made a big move that could deescalate the trade war with China
Business Insider
Published Jun 27, 2018 08:41AM ET
Updated Jun 27, 2018 09:31AM ET
- President Donald Trump announced the results of a review into Chinese investment in US tech companies.
- Trump decided to go with a less harsh method to curb the investments instead of a broader crackdown.
- He will expand the use of the Committee on Foreign Investment in the United States to restrict Chinese investments.
- US stock futures surged on the news.
President Donald Trump announced the details of a plan to the free-trade members of the administration, such as Treasury Secretary Steven Mnuchin and National Economic Council Director Larry Kudlow, over the more protectionist faction of the administration, headed by trade adviser Peter Navarro and US Trade Representative Robert Lighthizer.
The decision also drew the ire of some of the more China-skeptic members of Congress, such as GOP Sen. Marco Rubio.
"If in fact President Trump is now backtracking on tough limits on Chinese investment, it is a VERY BIG MISTAKE. #China is strategically buying up US companies specializing in cutting edge technology," Rubio tweeted. "What they don’t steal from us they buy away from us."
Other Republicans who were more worried about Trump's battle with China applauded the course of action.
"I welcome the President’s tough action to prevent any country from stealing our vital technology through investing in or acquiring US companies," Rep. Kevin Brady, the House Ways and Means committee chair, said in a statement. "To address these threats, the House and the Senate each have passed legislation to comprehensively revamp our CFIUS process. I’m glad that the President will be using that modernized and robust process to target and thwart such behavior."
In response to the news US stock futures surged, with S&P 500 and Dow Jones industrial average futures going positive after being in the red overnight.
Get The News You Want
Written By: Business Insider
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.