US Treasury considering emergency powers to restrict Chinese invesment - Reuters

Joshua Gibson FXStreet

As reported by Reuters, the US Treasury is considering using an old law that would allow President Trump to restrict Chinese investment in key areas by declaring a focused state of emergency.

Key quotes

"Heath Tarbert, Assistant Secretary for International Markets and Investment, told an Institute of International Finance Forum that those efforts were part of the Trump administration’s “Section 301” intellectual property remedies, which include China-specific investment restrictions."

"The Treasury may bring forward parts of a bill to modernize Committee on Foreign Investment in the United States security reviews."

"“We think CFIUS modernization is something that needs to be done via statute and should be done in a thoughtful way,” he said.

"The 1977 emergency economic powers law would give President Donald Trump broad authority to impose tighter restrictions on Chinese investment in sensitive sectors, by declaring a national emergency related to such investments."

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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