President Donald Trump plans to bar many Chinese companies from investing in U.S. tech and to block additional technology exports to China, The Wall Street Journal reported on Sunday evening, citing people familiar with the matter.
The two measures are set to be announced by the end of the week, and are intended to counter Beijing's Made in China 2025 — a Chinese initiative to be a global leader in technology.
The Treasury Department is drawing up rules to block companies with at least 25 percent Chinese ownership from buying companies involved in "industrially significant technology," the WSJ said.
Reuters confirmed the curbs on Chinese investment into such technology. The ownership threshold may change before the announcement on Friday, Reuters reported, citing a government official briefed on the matter.
The National Security Council and the Commerce Department are also putting together plans for tighter export controls that will not allow "industrially significant technology" to be exported to China, the paper added.
U.S. stock futures fell more than 0.5 percent in Asian trade on Monday after the WSJ report.
The White House and the Treasury Department did not immediately respond to a request for comment sent outside of regular office hours.
Trade tensions between the world's two economies have been escalating in the last few weeks.
Tariffs on an initial list of goods worth some $34 billion are expected to kick in on July 6. China has announced retaliatory measures on U.S. imports.
On June 15, the Trump administration announced that it would impose a 25 percent tariff on up to $50 billion of Chinese products. And then, on June 18, Trump said he had requested that the United States Trade Representative identify $200 billion worth of Chinese goods for potential additional tariffs at a rate of 10 percent.
China's Commerce Ministry responded by saying it would take counter measures if the U.S. publishes an additional tariffs list.