United States stocks trend higher on softening USA stance for China investments

30 June, 2018, 19:49 | Author: Clarence Schmidt
  • Traders work on the floor of the NYSE in New York City

Trump, during a meeting with lawmakers, pushed back on recent reports that the USA was preparing the investment restrictions and suggested the administration could do it through the foreign investment reviews under the Committee on Foreign Investment in the United States. An expansion of the scope of deals reviewed by the interagency panel would effectively address national security concerns, officials added.

Treasury Secretary Steven Mnuchin, who chairs the investment committee, rejected the idea that the administration had softened its stance after seeing the turbulence in financial markets.

While a senior U.S. administration official insisted that "this is a tough approach", it appeared to be a move to sidestep more aggressive efforts to restrict Chinese investment in technology firms.

"We can't let people steal their technology", Trump said when asked if the USA administration was preparing the investment restrictions.

"For those who want to say this is being weak on China, the answer is no", Mnuchin told reporters at briefing on the decision.

US stocks, which have reacted swiftly to shifts in sentiment on the U.S.

But Hunter noted that Trump's approach to policymaking is so mercurial that it's impossible to say whether the conciliatory approach will last or whether the Navarro camp will stage a comeback.

The White House opted to take a less confrontational approach toward Chinese investments in the U.S.as it pushes Congress to strengthen an existing review process rather than invoke a little-used law reserved for economic emergencies. Therefore, upon enactment of FIRRMA legislation, I will direct my Administration to implement it promptly and enforce it rigorously, with a view toward addressing the concerns regarding state-directed investment in critical technologies identified in the Section 301 investigation. It said the specifics of its plan would be officially announced by June 30, which is Saturday.

The decision to stick with CFIUS was a pragmatic move because the new CFIUS legislation "will put a crimp in China's efforts to move up the value chain in high tech", said Scott Kennedy, head of China studies at the Center for Strategic and International Studies in Washington.


The measure gives the Committee on Foreign Investment in the United States more power to review sensitive investments involving China, Russia and state sponsors or terrorism, allows reviews of land purchases near US military installations and ports and could stop key technology from being exported to China and other countries.

"There's a lot of talent out there, blessedly that would like to come work for me and would like to come work for President Trump", he said.

Now the Trump administration is trying to force China to change its ways.

The Chinese government's economic plans have a strong focus on technological advancement.

Mnuchin said Wednesday that the White House expects lawmakers to act quickly to protect U.S. technology.

A Commerce Department spokesman did not respond to Reuters' requests for comment on the study.

The Senate Banking Committee also approved a version of the reform, so the two chambers will have to reconcile them into a single bill for Trump to sign.

CFIUS has knocked back a string of proposed Chinese acquisitions of U.S. companies over the past year.

Recommended:

  • Protests close Tehran's Grand Bazaar

    Protests close Tehran's Grand Bazaar

    The protests in late December and early January saw at least 25 people killed and almost 5,000 arrested. In the Grand Bazaar, hundreds staged a similar protest, videos posted on social media show.
    Apple, Samsung settle epic patent infringement battle

    Apple, Samsung settle epic patent infringement battle

    Judge Lucy Koh, of the Northern District Court of California, has published a filing announcing the settlement. Apple hasn't commented on the settlement, but is referring media outlets back to its comments in May.
    Trump tweet may doom House Republicans' effort on immigration

    Trump tweet may doom House Republicans' effort on immigration

    Neither Trump nor House Republican leaders have reached out to Democrats and compromise in order to get the votes they need. She says Immigration and Customs Enforcement has asked her for a list of names to assist in the process.
  • Trump Stumps In Fargo

    Trump Stumps In Fargo

    He'd been expected to be in the consideration for next speaker if Democrats retook the House in the November midterms. Republicans see Heitkamp's seat as a key pickup opportunity in their battle to keep the Senate in GOP hands.
    Internet mocks 'Permit Patty' over black girl selling water

    Internet mocks 'Permit Patty' over black girl selling water

    Ettel was also set to be one of the subjects of a documentary called Lady Buds , a film about women in the cannabis industry. Ettel said she had no problem with the little girl; the issue was with the girl's mother, and "just about being quiet".
    Baby steps to equality: Cheers to New Zealand PM's mommyhood

    Baby steps to equality: Cheers to New Zealand PM's mommyhood

    She revealed the baby girl was healthy and weighed in at 7.3 pounds, before thanking the hospital staff who helped her deliver. It's the couple's first child together, and comes eight months after the 37 year old was sworn in as Prime Minister.
  • AirAsia cancels Bali flights after volcano spews ash

    AirAsia cancels Bali flights after volcano spews ash

    However, Indonesia's disaster mitigation agency said Agung's danger status had not changed and flights were not in danger. The 3031-metre high volcano's last deadly eruptions occurred in 1963 and 1964, during which about 1200 people were killed.
    James Harden named NBA's Most Valuable Player

    James Harden named NBA's Most Valuable Player

    Unfortunately for him, his incredible playoff run didn't factor into the voting (since MVP is a regular-season award). Dwane Casey was crowned Coach of the Year after guiding the Toronto Raptors to first place in the Eastern Conference.
    Harley-Davidson will not raise prices to cover tariff costs

    Harley-Davidson will not raise prices to cover tariff costs

    All three say they will be forced to close their plants unless they can get relief from the Trump administration's steel tariffs . The company already has plants in Australia, Brazil and India, and it will soon open another facility in Thailand .
  • Trump's next Supreme Court justice appointment will cement legacy: Sean Spicer

    Trump's next Supreme Court justice appointment will cement legacy: Sean Spicer

    Both conservative and liberal interest groups are poised to press the fight. Kirsten Gillibrand of NY wrote Tuesday on Twitter . Supreme Court after three decades on the panel.
    Arnav's expectations from Nigeria vs Argentina match

    Arnav's expectations from Nigeria vs Argentina match

    However, after drawing with Iceland and losing to Croatia, beating Nigeria is unlikely to be an easy task for Lionel Messi and Co. It is Argentina versus Nigeria for the third consecutive FIFA World Cup and the match has great consequences.
    Mohamed Salah considering quitting Egypt team over Ramzan Kadyrov row

    Mohamed Salah considering quitting Egypt team over Ramzan Kadyrov row

    Given the vocal Tweets from his agent, Ramy Abbas Issa, it's at the very least clear that all is not well in the Salah camp. Salah was reported to be unhappy after being photographed with Chechen leader Ramzan Kadyrov .


Popular

Needing one point, Osorio says Mexico to go for three v Sweden
It allowed Sweden to relax and they doubled their lead after 62 minutes through Granqvist's second spot-kick of the tournament. Sweden dominated Mexico 3-0 to move on to the World Cup knockout round, and thanks to South Korea , Mexico also advances.

Rep. Pramila Jayapal arrested after protest against Trump's family separation policies
The Associated Press reported that 575 protesters were eventually arrested after refusing to leave the building. All 50 Senators keep an office in the building, and it houses the offices of three Senate committees.

Uruguay vs Portugal | 30 Jun 2018
We're there to win". "He defends, commands, scores goals, wins titles, and does not miss a game", said Diego Maradona recently. Whatever happens to other teams is interesting for other people - people who analyse the results - but we're not interested.

Paul George To Opt Out Of Thunder Contract, Hit Free Agency
And Russell Westbrook has been in regular contact with George in an attempt to convince the five-time All-Star to stay. For one, he'll likely now sign a max contract, with the Thunder having the option to bring him back on a massive deal.

Lukaku breaks Belgium record against Tunisia
Whoever wins the group could possibly face defending champion Germany or Neymar and Brazil in the quarterfinals. Just a talking point at this stage between two teams with identical records at the top of Group G.

President Kenyatta Condemns Violent Attack In Zimbabwe
Mnangagwa later pointed out he'd had numerous attempts on his life in the past, saying he was used to them by now. But over the years, as tensions rose over who would succeed the 94-year-old, the system broke into factions.

Brazil Coach Tite Takes Dramatic Tumble While Celebrating Philippe Coutinho's Goal Again
He has the responsibility, the joy, the pressure and the courage to show it. "Everyone shows it in their own way". After the break Jesus heads an effort against the crossbar and Coutinho sends the follow-up effort narrowly wide.

Denmark vs France: Pogba, Lloris rested as Deschamps rotates for Denmark game
But with the Peruvians leading 2-0 before the hour in that game, the Moscow clash settled down to little more than a canter. Didier Deschamps is likely to rest some key players for the tie after narrow victories over Australia and Peru.

Uber driver streaming "The Voice" just before crash
Convicted armed robber Vasquez was supposed to act as a "safety driver" and take control of the vehicle if anything went wrong. A camera inside the vehicle pointed at the driver indicated that she didn't look up until half a second before impact.

Team by team analysis of the French Grand Prix
Red Bull's Max Verstappen qualified fourth with Australian team mate Daniel Ricciardo fifth and Ferrari's Kimi Raikkonen sixth. Bottas, less effective in his efforts to recover in a vehicle that suffered floor and other damage, was down in 10th.