The move marks another escalation of President Donald Trump's trade conflict with China, which threatens to roil financial markets and dent global growth. The benchmark will end the session in bear market territory, referring to a decline of 20 percent or more from a one-year high, if it finishes the day lower by at least 0.5 percent, according to Dow Jones.
The bill would allow the Committee on Foreign Investment in the United States (CFIUS) to review transfers of minority interests in companies dealing with critical infrastructure or critical technology as opposed to full acquisitions.
Beijing has signed an agreement to import beef from France while USA beef shipments will possibly become subject to high tariffs, and also signaled that it will allow more high quality French goods into Chinese markets. Katainen urged China to tackle overcapacity in its steel, aluminum, and other sectors including technology, the European Union said in a statement.
U.S. -China military relations are strained over China's militarization of disputed islands in the South China Sea.
"The next few months will show if these tensions are likely to deteriorate towards full-scale trade war". "The market does not like uncertainty, and a trade war is something that is hard, if not impossible, to handicap".
The two powers usually find themselves on opposite sides in economic disputes.
The EU and China have called Trump's actions "totally unacceptable" and an "act of extreme pressure and blackmail" while retaliating with tariffs of their own on billions of dollars' worth of U.S. goods. Some U.S. steel and aluminium tariffs went into effect in April and additional tariffs begin in July.
To date, the U.S. has placed a 25% and 10% duty respectively on steel and aluminium imports, covering around US$48bn of imports, with most of these coming from allies such as Canada, the EU, Mexico, and South Korea.
US President Donald Trump's top trade adviser sought to tamp down market panic over the White House's plans for investment restrictions against China by calling investors' interpretations "a misunderstanding".
Romberg had been the Distinguished Fellow and Director of the Stimson Center's East Asia Program, and he made significant contributions toward understanding U.S. -Taiwan, U.S.
There were conflicting messages, however, from the Trump administration, with White House economic advisor Peter Navarro telling CNBC that there were "no plans" to impose restrictions targeting foreign investments.
Treasury Secretary Steven Mnuchin took to Twitter today to contradict reports that companies with at least 25 percent Chinese ownership will be barred from buying USA companies with "industrially significant technology". But the White House itself earlier announced plans to unveil the restrictions by Saturday.
Speaking in Beijing ahead of an annual EU-China summit, representatives warned against single countries taking drastic action on trade policy by themselves, a barely-disguised attack on Trump's approach.