Donald Trump signalled on Tuesday that he could use an existing national security review system to police China’s investment in key US sectors just a day after markets tumbled on reports he was preparing more stringent restrictions.
The president indicated to reporters that China could be restrained by the Committee on Foreign Investment in the US, or Cfius, which reviews foreign investments for potential threats to US security.
If Mr Trump proceeds as indicated, it would represent a significant step back from a plan to impose additional investment restrictions on China, which the White House had been promising for months and had pledged to roll out by June 30.
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