White House considers “national emergency” powers against Chinese investment
By
Nick Beams
21 April 2018
The Trump administration is actively considering invoking legislation previously regarded as covering only military conflicts to step up its trade war measures against China in the area of high-tech development.
Speaking to a conference in Washington on Thursday, Heath Tarbert, assistant Treasury secretary for international markets and investment, said the administration was looking at invoking the International Emergency Economic Powers Act (IEEPA) as part of the moves against China ordered by Trump last month.
Under the 1977 law Trump could declare a national emergency in response to an “unusual and extraordinary threat” which would allow him to block transactions and even to seize assets.
Use of the legislation has been raised previously, but this is the first time an administration official has confirmed that it is under consideration. Its invocation would be directed against Chinese investment and activities in areas regarded as central to US “national security” including semi-conductors, new mobile phone technology and robotics.
The move was foreshadowed by Commerce Secretary Wilbur Ross earlier this week. Speaking to Fox Business Network on a bi-partisan bill before the Congress to increase the powers of the Committee on Foreign Investment (CFIUS), the panel that currently reviews foreign takeovers, Ross said there would be “limitations on foreign investment” adding that Trump would also take “other action.”
Tarbert told the conference the Treasury was supporting the bill to expand the powers of the panel but was not involved in the use of the IEEPA. “We have separate offices in Treasury which are considering two issues distinctly,” he…