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US stocks slide on escalating US-China trade tensions

27 Juin 2018

Meanwhile, the Wall Street Journal reported that measures would likely target investments in the U.S. by any company with at least 25% Chinese ownership, as well as exports of technology by United States firms. After failing to successfully negotiate for a reduction of the U.S.'s $375 billion trade deficit, the administration is enacting new tariffs on Chinese goods.

The US slapped a series of tariffs on European Union steel and aluminum on May 31, and on $50 billion worth of Chinese goods, including aircraft tires, agricultural machinery, and printer parts on June 15.

The US is set to announce new rules to curb Chinese investment in critical US technology.

Oh Ei Sun, senior adviser for worldwide affairs at the Asian Strategy and Leadership Institute in Kuala Lumpur, said that China was looking for Mattis's guidance on the Trump's administration defense and foreign policy objectives.

We add that the U.S. announced the introduction of a 25% tax on imported Chinese goods worth $ 50 billion and threatening a further extension of the list of Chinese exports.

He said markets have misunderstood the president's plans.

"We are talking cell phones, computers, toys and electric gadgets we get from China", said economist Stephen Moore, who served as a senior economic advisor to the Trump campaign.

North Korean media said Chinese President Xi Jinping and Kim reached an understanding on the denuclearization of the Korean peninsula after discussing the outcome of the US-North Korea summit.

The Trump administration accuses Beijing of predatory practices in its attempt to supplant USA technological dominance, including cybertheft and forcing US companies to turn over technology in exchange for access to China's market. French nuclear group Orano and China National Nuclear Corp announced an agreement for preparatory work on a used fuel processing and recycling plant in China.

USA stocks on Monday briefly fell more than 2 percent from Friday's close and senior White House economic adviser Peter Navarro appeared on television to try to calm investor fears about a possible trade war.

Trump's top trade adviser in the White House, Peter Navarro - author of a book called "Death by China" - has been laying the groundwork to escalate what he's so far called a "trade dispute".

Foreign investments already must pass interagency review under the Committee on Foreign Investment in the US, to see if they violate national security. "China will expand the scale of personnel exchange with foreign countries, and provide more convenience for foreign business travelers to China, including those from France". Experts say CFIUS has examined a greater number of deals, while paying particular attention to partnerships that could give foreign companies access to sensitive technologies or personal data on Americans.

But on this issue they have been driven together by Trump's increasingly aggressive push to levy tariffs both on rival powers - like China - and also longtime allies like the EU.

The administration could declare an economic emergency, or IEEPA, to justify the restrictions, according to the report.

US stocks slide on escalating US-China trade tensions