The United States Treasury Secretary, Steven Mnuchin, announced on Wednesday that the Department has prepared restrictions for Chinese investments in the United States and President Donald Trump will decide the actions that will be taken to counteract the China commercial policies.
“We worked on many options that will be analyzed by the President. I won’t go into details regarding what we can and what we can’t do. We will be the main agency to monitor and manage any restrictions regarding investments or licensing” Mnuchin says.
Restrictions for investments made by Chinese companies and additional taxes were the sanction tools recommended by the U.S.A. Trade representative Robert Lighthizer during a U.S. Congress hearing.
The Treasury secretary also said that the Washington administration will continue to talk to the Chinese Government in order to try to open China’s economy to companies from the United State and to shrink the commercial deficit of America.
“Our objective is to reduce our deficit through exports in China not by reducing goods import. I think that if China opens the markets we’re going t be able to reduce the commercial deficit. This is our objective” the secretary added.
On Friday Donald Trump will announce a series of customs taxes for products imported from China in an effort to sanction China for the illegal copyright practices.
Two sources from within the White House said that the total value of the customs tax for China will be approximately $50 billion per year. President Trump denounces alleged copyright thefts committed by China and wants to reduce the commercial deficit in regard to China.
How China reacts
China accuses the United States of America for repeatedly violating international commercial regulations, as Donald Trump intends to announce a series of customs taxes for products imported from China.
The Chinese commerce secretary made these comments after the World Commerce Organization decided against anti subsidies tariffs introduced by the Barack Obama administration.
The decision provides that America has violated WCO rules repeatedly abusing commerical protection measures which seriously affected by equitable and just nature of the international commerce environment and undermined the stability of the multilateral commercial system” a statement from the China Commerce ministry says.
Chinese commerce officials urged the United States to provide Chinese companies with a “stable and equitable international commerce environment”.