Trump softens on Chinese investment
The Associated Press pass strong FIRRMA legislation that better protects the crown jewels of American technology and intellectual property from transfers and acquisitions that threaten our national security — and future economic prosperity — I will direct my administration to deploy new tools, developed under existing authorities, that will do so globally,” Mr. Trump said in his written statement Wednesday.
A spokesman for China’s Ministry of Commerce said earlier Wednesday that they “are aware of the U.S. side’s close attention to the proposed investment restrictions and will assess the potential impact on Chinese enterprises.”
Mr. Trump campaigned for the White House on a pledge to take a much more aggressive stance with China and other trading partners. He has long accused other nations of exploiting poorly negotiated trade deals and of using unfair practices to sell America far more than they buy from it. The United States last year posted a $552 billion trade deficit with the rest of the world — $336 billion with China alone.
‘Both sides dancing around’
Trump’s supporters in America’s heartland. Many members of Congress have warned the administration to avoid a trade war with China.
“The president is unsatisfied with their response on the trade talks, and so he put out there the possibility of an additional tariff measure,” Mr. Kudlow said, referring to China. “The ball’s in their court. I’m always the optimist, but I have to be realistic.”
James Lewis, who studies technology policy at the Center for Strategic and International Studies, said he foresees no quick resolution to the dispute.
“Both sides are dancing around; they know a trade war is too expensive,” Mr. Lewis said. But there’s “going to be brinkmanship. The Chinese don’t want to play by the rules. We needed to start pushing back. This is going to be a long fight.”
The debate within the administration on how to deal with China had reportedly intensified — between hardliners like Peter Navarro, a top trade adviser, and moderates led by Mr. Mnuchin who favored a less confrontational stance.
“Peter Navarro lost, and Steve Mnuchin won, and we ended up with what’s actually a good policy,” said Rod Hunter, a lawyer who served as an economic official on the National Security Council in President George W. Bush’s administration.
But Mr. Hunter noted that Mr. Trump’s approach to policymaking is so mercurial that it’s impossible to say whether the conciliatory approach will last or whether the Navarro camp will stage a comeback.