New laws could block Chinese investment in US technology firms

By Pouyan Broukhim

According to Reuters, the US Treasury Department is looking to implement new legislature that would prevent any company with at least 25% Chinese ownership from acquiring a majority stake in US firms that provide “industrially significant” technologies.

The news has been confirmed by a US Government Official, matching a report from the Wall Street Journal last week.

See also:

The new laws will only serve to escalate the ongoing trade war that has developed between the US and China under Donald Trump’s Presidency, with the US set to implement $34bn of tariffs on Chinese goods on 6 July – the first of a possible $450bn.

The Official has revealed that the Treasury would invoke the International Emergency Economic Powers Act of 1977 in order to implement the new restrictions, providing the President with the authority to restrict national assets based on security concerns.

Further, according to the Wall Street Journal, the US Commerce Department and National Security Council are similarly looking to implement heightened export controls to prevent advanced technologies from being offered and/ or shipped to China.

Share

Featured Articles

Top 10 cybersecurity specialists in the US

As cyber attacks grow in frequency and become increasingly sophisticated, Business Chief looks at the top 10 cybersecurity specialists in the US.

Silicon Valley Bank collapse: How did we get here?

US authorities have stepped in to protect all Silicon Valley Bank customers following the second-largest bank failure in the country's history

Top 10 best new leadership books by women to read in 2023

To mark IWD, here’s our pick of the best new leadership books – all penned by impressive women at the forefront of the ever-evolving world of work

Eight of the best business leadership podcasts

Leadership & Strategy

CEO John Pagano, leading Saudi Arabia's Red Sea Global

Leadership & Strategy

Top 10 female CEOs according to Fortune’s Global 500 list

Leadership & Strategy