US plans curbs on Chinese investment in tech firms as trade tensions rise

US President Donald Trump, right, and China's President Xi Jinping. 
US President Donald Trump, right, and China's President Xi Jinping. The US Treasury is set to block Chinese investment in US tech firms in the latest escalation of the trade dispute between the super powers Credit: AP

The US is set to block Chinese companies from investing in American technology firms in a bid to protect intellectual property, according to reports citing sources at the US Treasury.

The draft proposals could prevent companies with 25pc or more Chinese ownership from investing in US companies with “industrially significant technology”, by using anti-terror legislation.

The level of Chinese ownership of a firm allowed to invest in US technology firms, and other key details on the restrictions could be altered before the release of a report by Treasury Secretary Steven Mnuchin, due to be finalised on Friday.

The step would be aimed at areas such as aerospace, robotics and pharmaceuticals. These...

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