>> The White House trying out a new tactic Wednesday in the escalating trade standoff with China, a light touch. The Trump administration deciding against an all out restriction on Chinese investment in US companies as part of Trump's wider trade fight with Beijing. Reuters' Breakingviews' editor John Foley points out, this approach is less adversarial than feared just a few days ago.
>> He had two choices. He could have imposed a blanket ban on Chinese investments in certain areas, and not just Chinese investments, but investments by companies that had Chinese ownership, even 25% Chinese ownership. He didn't do that, which is good news. What he did instead is say that the body that regulates and looks at investment from overseas and decides whether to let it through or not is gonna get some beefed up powers.
And it's gonna affect those investments, not just from China, but from everywhere.>> That group, known as The Committee on Foreign Investment in the United States, or CFIUS, will be looking out for any investments that jeopardizes national security or allows companies to steal intellectual property. The White House has repeatedly claimed vital technologies are being stolen through US/China corporate partnerships, forced on American companies who want access to the Chinese market.
Trump's decision to lean on CFIUS is seen as a win for Wall Street. And a short term victory for free traders in the White House like Treasury Secretary Steven Mnuchin.>> Today, it looks like Mnuchin's side is slightly winning. So the markets are basically happy because they think that we're gonna see less restrictive terms applied to investment coming into the country.