There are two aspects to this recent story: the visible surface issue; and the unspoken issue below the surface. In essence, there’s more here than most will recognize at first blush.
The surface level aspect is the Trump administration considering a block on U.S. investments into the opaque financial system that is China.
The U.S. financial media view the proposal through the prism of the White House looking for leverage over Beijing during negotiations:
(Via CNBC) […] Restricting financial investments in Chinese entities would be meant to protect U.S. investors from excessive risk due to lack of regulatory supervision, the source said.
The deliberations come as the U.S. looks for additional levers of influence in trade talks, which resume on Oct. 10 in Washington. Both countries slapped tariffs on billions of dollars worth of each other’s goods. The discussions also come as the Chinese government is taking steps to increase foreign access to its markets.
