The tariffs that Trump has already announced against China involve goods in aerospace, IT, robotics and machinery sectors.
US President Donald Trump said on Wednesday he will use a strengthened national security review panel process to deal with potential threats from Chinese acquisition of American technologies, instead of imposing China-specific restrictions.
President Trump on Wednesday softened proposed limits on China's right to invest in USA technology companies, the latest sign of an on-again, off-again trade war that is raising doubts about his ability to wring concessions from Beijing.
The House on Tuesday approved a bill that would strengthen the CFIUS law and that bill was expected to be considered as part of a joint House-Senate conference committee reviewing a Senate-approved defence policy bill.
USA tariffs on an initial US$34 billion in Chinese goods are still scheduled to take effect on July 6.
New legislation "will enhance our ability to protect the United States from new and evolving threats posed by foreign investment while also sustaining the strong, open investment environment to which our country is committed and which benefits our economy and our people", Trump said in a written statement. The White House announced on June 27 that it would not limit Chinese investment in USA companies beyond what Congress is already working on.
Just last week, the president threatened to impose tariffs on nearly all Chinese goods shipped to the United States, a move that reflected Navarro's enduring influence.
On May 29, the White House said that new "investment restrictions and enhanced export controls will be announced by June 30" and implemented shortly thereafter. "Using CFIUS on a case-by-case basis to try to change Chinese approaches to industrial policy would be neither efficient nor effective".
Apple and Samsung settle US patent dispute
Apple and Samsung have agreed a settlement in their patent infringement dispute, bringing a seven-year-long battle to a close. Samsung declined to comment about the settlement. "This case has always been about more than money", the statement read.
"At the end of the day, all the president's advisers were 100 per cent unanimous when we sat down with the president", Mnuchin said.
While House and Senate versions of the bill still need to be reconciled, both bills are created to strengthen the CFIUS review for foreign investment in critically important technologies.
Trump also said that he has directed Commerce Secretary Wilbur Ross to examine US export controls and recommend modifications that may be needed "to defend our national security and technological leadership". The Chinese don't want to play by the rules.
Chinese investment in the United States has declined dramatically amid heightened regulatory scrutiny.
"If in fact President Trump is now backtracking on tough limits on Chinese investment, it is a VERY BIG MISTAKE", Rubio tweeted early Wednesday.
In a statement, Trump said, "I have concluded that such legislation will provide additional tools to combat the predatory investment practices that threaten our critical technology leadership, national security, and future economic prosperity".
Through this review, United States will assess its export controls and make any modifications that may be needed to strengthen them to defend national security and technological leadership.
Mnuchin told reporters that the differences among Trump's advisers had been overblown.