The inter-agency CFIUS panel, if bolstered by Congress, can address those concerns while maintaining an open investment climate, one of the administration officials said.
The Trump administration backed away from a threat to apply controversial new restrictions on Chinese investment in the US, instead opting to work within an existing Treasury Department framework to review such investments.
President Trump on Wednesday softened proposed limits on China's right to invest in US 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.
FIRRMA (Foreign Investment Risk Review Modernization Act) passed the House by an overwhelming margin yesterday, and it's expected to become law after Congress agrees on final language.
If Congress does not produce a compromise bill, Trump said his administration would "deploy new tools, developed under existing authorities" to protect USA technology and intellectual property.
CFIUS has already been more aggressive under Trump, especially on China. "Marco Rubio, R-Fla. "#China is strategically buying up USA companies specializing in cutting edge technology. "And we believe it will affect the competitiveness of the United States".
The comments ran counter to a May 29 White House statement: "The United States will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology".
Tite tempers Brazil's World Cup hopes ahead of Mexico clash
Costa and Danilo, who was nursing a hip injury, did not travel with the rest of the squad for the match against Serbia in Moscow . Neymar's goal from inside the six-yard area made it 2-0 for five-time winners Brazil on 22 June. "It's all under control".
Fears of a trade war are starting to affect financial markets, especially shares of the largest corporations that are exposed to global trends, he said.
Trump also said that he has directed Commerce Secretary Wilbur Ross to examine USA export controls and recommend modifications that may be needed "to defend our national security and technological leadership". "Using CFIUS on a case-by-case basis to try to change Chinese approaches to industrial policy would be neither efficient nor effective".
After fears that Trump would introduce harsh measures to curb Chinese investment in US-based technology companies, the USA president instead made a decision to use less stringent methods to curb the practice, including the expanded use of the Committee on Foreign Investment in the United States. The Chinese don't want to play by the rules.
It can make recommendations to the president, who can stop a deal from going though, although in practice a negative CFIUS finding alone is sometimes enough to kill off a deal.
"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", Trump said. After news of the White House decision broke early Wednesday, stock futures rallied.
The president's choice to back away from strict restrictions on Chinese investment marks a slight easing of tensions as USA tariffs on China are set to go into effect.
"Mnuchin, it seems like he is prevailing on a lot of these disputes", said Steve Moore, who was a top economic adviser to Trump during the campaign.