Trump administration officials reportedly discussed further restrictive economic pressure toward China this week, as the trade war rages on between the United States and Asia’s leading economic powerhouse.
An anonymous source familiar with the situation told CNBC the White House is currently considering restricting, if not entirely blocking, U.S. investments in Chinese companies for the foreseeable future.
The moratorium would likely apply to all private investments in the nation, seeking to hedge against American losses that may come as a result of poor “regulatory supervision” by the Chinese government.
These discussions are deemed to be in the “preliminary stages,” and the administration has yet to make its final determinations.
But there is reason to believe a decision could be broached relatively soon, as the source also suggested President Donald Trump and economic advisers have been seeking more opportunities for leverage against China with the next set of trade negotiations fast approaching.
Renewed negotiations between Trump and Chinese Vice Premier Liu He will take place in Washington early next month, the Associated Press reported.
Talks are slated to begin Oct. 10, three sources familiar with the situation confirmed to CNBC earlier this week.
According to Bloomberg, the U.S. stock market sank amid initial reports of the Trump administration’s latest plan with regard to the trade war.
The pressure was felt in spades by Chinese firms traded in the U.S., many of whom suffered more than 5 percent tumbles this week.
Chinese currency also suffered, CNBC reported, dropping to 7.15 against the U.S. dollar.
MORE: Markets fall after Trump administration officials say they're considering limits on U.S. Investor portfolio flows into China.
— Bloomberg (@business) September 27, 2019
Still, China stands to suffer even more dramatic loses if the administration pursues the total restrictive action proposed this week,
According to the National Committee on U.S.-China Relations, American foreign direct investment in China totals roughly $14 billion dollars annually.
Author: Andrew J. Sciascia
Source: Western Journal: Trump White House Considering Blocking All Investment in China: Report