Mnuchin denies tech restrictions report

Says limitations not aimed just at China

WASHINGTON Trump administration officials are denying reports that the United States is readying limitations this week on Chinese investment in American technology companies and high-tech exports to China. But the White House itself earlier announced plans to unveil therestrictions by Saturday.

Treasury Secretary Steven Mnuchin said on Twitter Monday that reports by The Wall Street Journal and Bloomberg news are “false, fake news. The leaker either doesn’t exist or know the subject very well” and that any restrictions would not be aimed solely at China but at “all countries that are trying to steal our technology.”

Mr. Mnuchin’s comment contradicts a May 29 White House statement, which said “the United States will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related —to the acquisition of industrially significant technology.” It said the controls would be announced by June 30 and would “be implemented shortly thereafter.”

Further confusing matters, White House trade adviser Peter Navarro told CNBC Monday that “there’s no plans to impose investment restrictions on any countries that are interfering in any way with our country.” He added that the administration’s probe into alleged technology theft is limitedto China.

Talk of investment restrictions knocked the Dow Jones industrial average down328.09 points, or 1.3 percent, to 24,252.80 — though the Dow recovered from deeperlosses after Navarro’s comments.

The Trump administration accuses Beijing of predatory practices in its attempt to supplant U.S. technological dominance, including cybertheft and forcing U.S. companies to turn over technology in exchange for access to China’s market. It is planning to impose tariffs on $34 billion in Chinese goods July 6 — a figure that could rise to $450 billion if China refuses to back down and retaliates with sanctions of its own.

In Beijing, China’s foreign ministry expressed concern over the reports that President Donald Trump plans to curb Chinese investments in the United States, and urged Washington to provide a “good, fair, and predictable” environment for Chinese companies.

Bloomberg reported that eight people familiar with the plans who spoke on the condition of anonymity said the White House plans to use one of the most significant legal measures available to declare China’s investment in U.S. companies involved in certain technologies a threat to economic and national security.

Mr. Mnuchin, in a report scheduled to be released Friday, will suggest administering that law through an interagency government panel called the Committee on Foreign Investments in the U.S., or CFIUS, the people told Bloomberg. The Journal, citing unidentified sources, said the initiatives were aimed at preventing Beijing from moving ahead with plans to develop companies able to compete globally in technologies including biotech and electric vehicles.

China is attempting to become a global leader in biotechnology, electric vehicles and other industries, and the reports said the administration wants to slow Beijing’s progress in those areas. Mr. Trump has threatened to put tariffs on hundreds of billions of dollars in Chinese imports over complaints Beijing steals or pressures foreign companies to hand over technology. He’s also pressuring China to buy moreU.S.-made goods.

All but one of the 72 technology companies listed on the S&P 500 index fell Monday. Those companies have done far better than the broader market over the last year and a half and investors had considered them to be less vulnerable to tariffs than other sectors like manufacturing.

“We hear one thing one hour and something that contradicts it the next hour or the next day,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab. “Nobody knows what to think or what to believe. It makes it really toughto invest.”

Chipmaker Micron Technology, which gets half its revenue from China, lost 6.9 percent to $53.16 and Advanced Micro Devices fell 4.4 percent to $15.11. Nvidia sank 4.7 percent to $239.12.