The dispute between the US and Chinese governments continues with the former now looking to prevent, or at least limit Chinese investment in U.S. technology firms.
According to a report by Reuters, the US Treasury Department is developing a series of roadblocks that would limit Chinese firms from owning more than 25 per cent of any American company with ‘industrially significant technology’.
That ‘industrially significant technology’ includes advanced information technology, aerospace, marine engineering, pharmaceuticals, advanced energy vehicles, robotics and other high-technology industries.
Besides limiting investment, it was also said that the U.S. Commerce Department and National Security Council were also considering “enhanced” export controls, to make sure these technologies do not end up getting exported to China.
All of this allegedly can be made possible by invoking the International Emergency Economic Powers Act of 1977 (IEEPA).
Spokespersons for the Treasury, Commerce Department and the White House are still silent on the matter, Reuters adds.
The US – China trade war kicked off with the US banning its companies from doing business with telecoms equipment manufacturer ZTE, which almost killed the company.
The ban was imposed after it was realised that ZTE was shipping its products, which had US-built parts, to countries under US embargo – North Korea and Iran.
Photo credit: karen roach / Shutterstock