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image: REUTERS/Jonathan Ernst

Trump is planning to stop China taking over American firms — and it’s another blow for the 2 countries’ relationship

June 25, 2018

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A new measure set to be implemented by the US Treasury Department could further deepen the growing gulf between the US and China when it comes to their trade relationship.

According to a Wall Street Journal report on Sunday, the Treasury is planning to introduce new curbs on the Chinese ownership of US technology firms, which would effectively amount to a ban on Chinese firms buying up American ones.

If implemented, the new proposals would essentially block firms with 25% or more Chinese ownership from buying US companies involved in what the Journal says is described as “industrially significant technology.” The ultimate cutoff point for ownership has not been decided, and could be higher or lower, it is reported.

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