US President Donald Trump is shifting away from a previously announced plan to impose limits on Chinese investment in American technology companies and high-tech exports to China.
Instead, the president is calling on Congress to enhance an existing review process.
Senior administration officials disclosed the plans on Wednesday. They said they have been working with Congress to pass a bill that will provide "enhancements" to the foreign investment reviews under the Committee on Foreign Investment in the United States.
Trump says in a statement on Wednesday 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. "
While a senior US administration official insisted that "this is a tough approach," it appeared to be a move to sidestep more aggressive efforts to restrict Chinese investment in technology firms.
"If, in fact, President Trump is now backtracking on tough limits on Chinese investment, it is a VERY BIG MISTAKE," Republican Senator Marco Rubio said on Twitter just before Wednesday's announcement.
"#China is strategically buying up US companies specialising in cutting-edge technology. What they don't steal from us they buy away from us."
