U.S. takes another swing at China with investment restrictions

U.S. takes another swing at China with investment restrictions

U.S. takes another swing at China with investment restrictions

Trump's administration announced plans Tuesday to slap $50 billion worth of tariffs on Chinese technology while taking steps to impose new investment restrictions and export controls, aimed at pushing China to remove trade barriers that make it hard for USA companies to do business in China.

The announcement came just ahead of U.S. Secretary of Commerce Wilbur Ross's visit to China.

The White House yesterday announced that it will impose a hefty 25 percent tariff on the $50 billion worth of Chinese goods containing "industrially significant" technology including those related to the "Made in China 2025" program, days after the two sides reached an agreement and vowed not to launch a trade war against each other.

A day after the United States announced 25 per cent tariff on Dollars 50 billion of Chinese tech goods, China on Wednesday said that it did not want a trade war and remained undeterred.

"China might still impose measures on U.S. soybeans given the current development of Sino-U.S. trade situation". Whilst Mnuchin had managed to secure promises from China to greatly reduce the bilateral trade deficit, more hawkish officials like Navarro or US Trade Representative Robert Lighthizer think stricter, more punitive measures must be taken.

"The thinking became that if the USA doesn't have any leverage and there is no pressure on our Chinese friends, then we will not have serious negotiations", Zarit added.

China is willing to increase imports from multiple countries including the United States, Xinhua said, adding that reform and opening up and increasing domestic demand were China's national strategy.

Digital savant Omar Gallaga of the Austin American-Statesman's 512 Tech says ZTE isn't a major player in the USA phone market, though it is a large company that has stolen US technology. However the classes the Chinese language Finance Ministry chosen for tariff cuts cowl few American items, and gave the impression to be focused at China's aim of creating subtle industries slightly than low-value mass manufacturing.

The resumption of tariff actions by the United States could lead China to restart its own tariff actions.

The president has bemoaned the massive USA trade deficit with China - $337 billion past year - as evidence that Beijing has been complicit in abusive trading practices and outsmarted his predecessors.

She urged the U.S.to keep its "word and work" with China according to the spirit demonstrated in the joint announcement. That would be on top of a $1 billion penalty ZTE paid for selling high-tech equipment to North Korea and Iran in violation of US sanctions.

Citing a document issued by the Trump administration in December, the official said the USA government would consider restrictions on visas for science and technology students from some countries.

In return, the Commerce Department lifted a seven-year ban on ZTE's purchase of US components that it imposed earlier in May.

"China's attitude, as always, is: we do not want to fight, but we are also not afraid to fight", it said in a commentary.

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