The US Treasury Department is still considering the possibility of using an obscure 1977 law granting the president emergency powers in event of an “unusual or extraordinary threat” to block Chinese investment in sensitive industries, Bloomberg reports.
Heath Tarbert, an assistant secretary in the Treasury international affairs office, confirmed that the agency is reviewing the possibility of using the International Emergency Economic Powers Act, which grants the president the power to block deals and seize assets.
The law could be activated by the Trump administration as part of its response to China’s alleged theft of intellectual property and forced technology transfer. Treasury Secretary Steven Mnuchin has until May 21 to propose executive actions to address concerns regarding investments in the US “directed or facilitated by China in industries or technologies deemed important,” according to a March 22 presidential memo.
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