Treasury secretary dismisses reports of technology restrictions on China

The Trump administration accuses Beijing of predatory practices in its attempt to supplant USA technological dominance, including cybertheft and forcing US companies to turn over technology in exchange for access to China’s market.

Business activity in Germany and France, the euro zone’s top two economies, picked up in June despite trade tensions between Europe and the United States, IHS Markit data showed.

A trade war? Nah!

“Chinese are deeply concerned about Washington’s containment plans against Beijing”, the Global Times said, adding, “China is indeed anxious about being blackmailed by the USA and therefore needs to strengthen its nuclear force”.

Mattis visit assumes significance as the USA wants China’s support in nuclear talks with North Korea.

The measures are set to include rules that would bar firms with at least 25% Chinese ownership from buying companies involved in technology deemed significant by the White House, a person familiar with the plans told CNN on Monday.

According to a Wall Street Journal report on Sunday, the Treasury is planning to introduce new curbs on the Chinese ownership of USA technology firms, which would effectively amount to a ban on Chinese firms buying up American ones. The new tariffs are due to take effect on July 6.

China had also committed to buying 184 single-aisle A320 Airbus planes during Macron’s January visit, but the deal has not been finalised. The forthcoming restrictions would apply “to all countries that are trying to steal our technology”, he said.

The lira traded at 4.68 to the dollar, up 1.7 percent from 4.6625 at the end of last week.

Chinese Premier Li Keqiang speaks during a meeting with French Prime Minister Edouard Philippe, French Justice Minister Nicole Belloubet, French Foreign Minister Jean-Yves Le Drian, Chinese Foreign Minister Wang Yi, China’s Chairman of the National Development and Reform Commission He Lifeng and French business leaders and entrepreneurs at the Great Hall of the People in Beijing, China June 25, 2018.

However, the commerce ministry spokesman says Beijing has had to respond in a strong manner because of USA tariff threats.

But on this issue they have been driven together by Trump’s increasingly aggressive push to levy tariffs both on rival powers – like China – and also longtime allies like the EU.

Trump on Tuesday once again hit out at countries that had placed tariffs on United States goods, and threatened to impose even more tariffs.

But trade policy adviser Navarro, the administration’s harshest China critic, has advocated a far more confrontational approach with Beijing. Free trade is ideal, but it cuts both ways.

But China’s state-run Global Times newspaper, warned in an editorial on Tuesday that “Mattis should listen rather than criticize”. Beijing made a decision to impose 659 American goods with duties in the same 25%. As China steps up its engagement in Europe, the European Union, too, is working on measures to tighten screening of outside investments to protect critical technologies and infrastructure.

“But in many ways, the U.S. tech sector is now being treated as an issue of economic security and national security”, said Triolo, which he said would prevent further collaboration – especially following concerns about Chinese espionage on U.S. communications networks.

Trump in May had directed the Commerce Department to launch an investigation into imported autos, similar to the procedure that led to the recent tariffs on steel and aluminium imports.