US mulling broad curbs on Chinese investment, imports, sources say, as trade war looms
Measures considered to punish China over alleged theft of intellectual property, according to sources. An announcement is likely in the coming weeks
The Trump administration is considering clamping down on Chinese investments in the US and imposing tariffs on a broad range of its imports to punish Beijing for its alleged theft of intellectual property, according to people familiar with the matter.
An announcement following an investigation by the US Trade Representative’s office into China’s intellectual property practices is expected in the coming weeks, potentially handing President Donald Trump further cause to impose trade restrictions. His announcement last week of tariffs on steel and aluminium imports has already ratcheted up global trade tensions and led to the resignation on Tuesday of his chief economic adviser Gary Cohn, who opposes such measures.
The president is now fighting trade offensives on multiple fronts, from targeting strategic rival China to angering allies like Canada and the European Union with threats to erect fresh barriers. While his counterparts have threatened retaliation, concrete action that would herald the start of an all-out trade war is yet to come.
Under the most severe scenario being weighed, the US could impose tariffs on a wide range of Chinese imports, from shoes and clothing to consumer electronics, according to two people familiar with the matter who spoke on condition of anonymity because the discussions are not public.
The Trump administration could combine the tariffs with restrictions on Chinese investments in America, which are reviewed for national security risks by Treasury’s Committee on Foreign Investment in the US, the people said. The new measures being considered by the administration could go beyond even domestic security considerations.