U.S. Considers Broad Curbs on Chinese Imports, Takeovers

The Trump administration is considering clamping down on Chinese investments in the U.S. and imposing tariffs on a broad range of its imports to punish Beijing for its alleged theft of intellectual property, according to people familiar with the matter.

The U.S. Trade Representative’s office last year began investigating China’s IP practices under a seldom-used trade law that gives President Donald Trump powers to impose trade restrictions to protect American commerce from unfair trading actions by foreign nations. An announcement about the investigation is anticipated in the coming weeks.

The move would escalate tensions already running hot over Trump’s plan to impose stiff tariffs on steel and aluminum imports, risking retaliation from allies and major trading partners like China and rankling Republican lawmakers over the economic costs. Trump struck a defiant tone this week, tweeting that he’d welcome a trade war.

The Trump administration could combine the tariffs with restrictions on Chinese investments in the U.S., which are reviewed for national-security risks by Treasury’s Committee on Foreign Investment in the U.S., the people said. The new measures being considered by the administration could go beyond even domestic security considerations.

The U.S. has long been wary of China’s push to develop its own semiconductor industry that could compete with American firms. That concern was highlighted in a letter made public Tuesday, in which the Treasury Department said Singapore-based Broadcom Ltd.’s hostile takeover attempt of Qualcomm Inc. could pose a national security risk.

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