To rely on 1988 law
Trump suggested today, that he will ease the demands for new restrictions on top Chinese tech investment. Instead he implied that the government could rely on a 1988 law which lets US review foreign investments for national security problems. This is according to the Wall Street Journal.
Trump said today that the US has "the greatest technology in the world", but "people come and steal it". As a result, we need to protect it.
He suggested the protection could come solely through CFIUS which is an acronym for Committee on Foreign Investment in the US.
That committee screens foreign investments to see whether they endanger national security.
So instead of having new restrictions on Chinese tech investments, the CFIUS could provide the protection via a review process.
The US administration is concerned about the "Made in China 2025" plan where China desires to be a global leader in 10 broad areas of technoology, including information technology, aerospace, electric vehicles and biotechnology. Such domination would likely not come without risks for the US national security (not to mention economy). There would need to be some protective control. Trump is hoping CFIUS to provide that control without having to demand new restrictions on all new China investments.
In order for CFIUS to be relevant, however, lawmakers will need to work on a CFIUS reform bill. It may also end up with the same results, if the group denies all new investment anyway.
For more, see the article here.
