China, Europe warn trade war could trigger global recession

U.S. Treasury's Mnuchin says new investment curbs not specific to China

The Treasury Department is due to announce restrictions on Chinese investment in the U.S.by Friday.

President Donald Trump has raised concerns about China's plan to strengthen high-tech industries like robotics, aerospace and computer chips, also known as Beijing's "Made in China 2025" policy.

He said the restrictions will not be specific to China but would apply "to all countries that are trying to steal our technology".

A Chinese woman adjusts a Chinese national flag next to US national flags before a Strategic Dialogue expanded meeting, part of the U.S. The S&P technology index.SPLRCT fell 2.3 percent, the most among the major S&P 11 sectors.

Most economists warn that tariffs, including ones the USA has imposed on foreign steel and aluminium, are disrupting supply chains and risk discouraging investment and hiring.

Navarro said markets should "let the process work" and President Donald Trump is "going to get good information this week on where the chess board stands and make decisions accordingly". Among big US movers, Intel Corp. fell 3.4 per cent, Visa Inc. fell 3.2 per cent and Boeing Co. fell 2.2 per cent.

Late last month, Trump infuriated United States allies - from the European Union to Canada and Mexico - by imposing tariffs of 25 percent on imported steel and 10 percent on aluminum.

It also said it would unveil a revised list of Chinese goods for tariffs, which it did on June 15.

Messi stressed & unhappy at World Cup, says Zabaleta
The defeat left Argentina , as well as the career of its star player Lionel Messi , on the brink of a humiliating World Cup exit. His 31st birthday on Sunday only served to highlight how time is running out for Messi to win a major worldwide tournament.

Derek Scissors, a China scholar at the American Enterprise Institute who consults regularly with the administration, said that he believes Mnuchin would prefer to apply the text of a bill working its way through Congress to strengthen national security reviews of US acquisitions to investments by China.

Foreign investments already must pass interagency review under the Committee on Foreign Investment in the US, to see if they violate national security.

"I would not, on the investment side, be betting against the Treasury Department", Scissors said, noting that Treasury would control implementation of such rules.

The government official said the Treasury would invoke the International Emergency Economic Powers Act of 1977 (IEEPA) to devise the restrictions.

But White House adviser Peter Navarro in a confusing interview with CNBC said first that there was no plan to impose investment restrictions on China or other countries, that the United States was not singling out China, and then said Treasury would present a report on investment restrictions on China on Friday.

Stocks fell in midday trading Monday, with the Dow Jones industrial average down as much as 446 points, amid reports of protectionist policy pushes by the Trump administration that would ramp up trade tensions on multiple fronts.

Policymakers in China moved quickly to temper any potential economic drag from Beijing's dispute with the United States.

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