The memo, viewed by CNBC on Tuesday, does not make a policy recommendation but outlines the reasons why potential investment limits should be studied. It also suggests the next step, to arrange a meeting of the Policy Coordinating Committee, which includes members of relevant government agencies and White House divisions. The memo suggests that the group hold a follow-up meeting the week of September 30 to October 4.
CNBC reported Friday that the White House had begun a deliberative process to evaluate what, if any, restrictions on Chinese investment it might pursue. However, White House officials denounced the news, with the Treasury Department saying in a Saturday tweet that the Trump administration “is not contemplating blocking Chinese companies from listing shares on US stock exchanges at this time.” White House trade advisor Peter Navarro also called the reporting on the idea “fake news.”
A senior White House official told CNBC the policy process can last anywhere from a few weeks to more than a year, depending on whether US President Donald Trump intervenes to expedite it.
The news comes at a crucial time before the restart of talks between the world’s two biggest economies on October 10 in Washington. China’s Global Times said Sunday that possible investment curbs are the latest US attempt to decouple from China, which will have “significant repercussions.” US President Donald Trump on Monday said the US will insist on its hard stance, adding “we are winning and we will win.”