Daily Management Review

Washington is getting ready to limit investments in high technology


The US White House is preparing new restrictions to protect US high-tech companies Now, they relate not to imports, but to foreign investments. In this case, the head of the Ministry of Finance Steven Mnuchin said that the measure will not be directed solely at Chinese companies, but will affect other countries caught in the theft of intellectual property.

US Treasury Secretary Steven Mnuchin confirmed on Monday that the White House is developing new restrictions that will affect potential investors in US high-tech companies. At the same time, he refuted media reports that such a plan is being prepared exclusively against China. The measure will affect all countries "trying to steal our technologies," he said. According to Reuters, the ban may be aimed at companies with important industrial technologies, in which the investor's share after the transaction would be more than 25%.

Drafters of the report of the office of the US trade representative on the results of the investigation related to the theft of intellectual property indicate that the main growth of investments from China was observed in seven sectors - the automobile industry, the aviation sector, electronics, energy, biotechnology, industrial equipment (including robotics) and IT. From 2005 to 2016, the annual volume of capital investments in them increased from $ 1.9 billion to $ 9.8 billion.

Earlier, the US already announced the introduction of increased duties on imports from China in the amount of $ 34 billion starting from July 6 (the tariff will be 25%). The list of goods worth $ 16 billion will be approved later, after public hearings. Also, Donald Trump instructed the country's sales representative to prepare a list of goods for which 10-percent duties could be introduced for another $ 200 billion of imports. This measure was announced as a response to the equivalent ($ 50 billion) increase in duties by China with respect to imports from the United States.

In addition, according to Donald Trump on Friday, the United States is still considering the possibility of introducing a 20 per cent tariff for the import of cars from the EU, if the countries of the union do not remove the already imposed restrictions (this is the $ 3.3 billion approved by the EC). "All countries that use artificial barriers to US exports will face more than mutual restrictions, trade should not be a one-way street," the US president called. 

source: cnn.com