Muchin: "Unfortunate" Market Got Mixed Messages; CFIUS Won't Target China Specifically

Confirming that the Trump administration was clearly spooked by the market's Monday drop, following news that Trump "blinked" on the escalating trade war, and had decided against creating a new regime to review Chinese investment in the US and will instead rely on the existing CFIUS approach to protect US technology, Treasury Secretary Steven Mnuchin told CNBC that it was "unfortunate" the market got mixed messages and that all Trump advisors were unanimous on this decision.

"If there are mixed messages, that's something that is unfortunate," Mnuchin told CNBC's "Squawk Box." "What happened over the weekend there were leaks saying that president had made a decision had been made. It was completely not true."

"When the president and I discussed this, he suggested I tweet on behalf of him to clarify that a decision had not been made," Treasury secretary added. "Those leaks were not helpful to the markets or not helpful to the process."

Mnuchin blamed White House trade advisor Peter Navarro for sending mixed signals Monday about the Chinese investment restrictions.

* * *

Earlier on Wednesday, the White House announced that it won't be looking to block companies with 25 percent or more of Chinese ownership from buying certain U.S. tech-related companies. Instead, the government will rely on the newly-strengthened Committee on Foreign Investment in the United States, or CFIUS, to deal with concerns.

In explaining the move, Mnuching told reporters that the move to use CFIUS to protect U.S. technology was "not intended to target China," and added that CFIUS was able to respond appropriately to different threats on different technologies posed by different entities from different countries.

Mnuchin also said that if Congress fails to pass Firrma, the administration will look at new executive branch tools.

Separately, Trump made the following comment on his pivot:  “I urge Congress to send me a strong bill as soon as possible and look forward to implementing it” to protect U.S. security and prosperity, President Trump says about the Foreign Investment Risk Review Modernization Act, known as FIRRMA.

“Upon enactment of FIRRMA legislation, I will direct my Administration to implement it promptly and enforce it rigorously, with a view toward addressing the concerns regarding state-directed investment in critical technologies identified in the Section 301 investigation”

“Should Congress fail to pass strong FIRRMA legislation that better protects the crown jewels of American technology and intellectual property from transfers and acquisitions that threaten our national security - and future economic prosperity- I will direct my Administration to deploy new tools, developed under existing authorities, that will do so globally.”

For now the market is taking the news in stride, seeing it as Trump walking back from "irreversible" escalations, and not only recovered all pre-market losses, but was modestly in the green.

Comments

American Psycho Freeze These Wed, 06/27/2018 - 08:31 Permalink

Unfortunately, these asshole politicians only think about 'what will make the market great again.'  I'd love for a politician or a FED official to not say a damn thing about the market, asset valuations, or inflation targeting.  Just propose ideas that would support sound money and the greatest amount of economic freedom. 

A boy can dream, right?

In reply to by Freeze These

Yellow_Snow topspinslicer Wed, 06/27/2018 - 09:29 Permalink

Companies in the USSA must be going nuts...

 

Monday...  "Double down on the Trade War",

Tuesday: "Tit for Tat",

Wednesday: "We were just Joking...  Ha, Ha"... 

Thursday: "We have a gun to China's head, We'll Win"... 

Friday: Bla, Bla, Bla...

 

Should I stay...  Or should I Go ?

Harley-Davidson is going... 

More will follow...  [update: Tesla, BMW]

In reply to by topspinslicer

DingleBarryObummer shizzledizzle Wed, 06/27/2018 - 08:44 Permalink

“There’s no recession coming. The pessimistas were wrong. It’s not going to happen. At a bare minimum, we are looking at Goldilocks 2.0. (And that’s a minimum). Goldilocks is alive and well. The Bush boom is alive and well. It’s finishing up its sixth consecutive year with more to come. Yes, it’s still the greatest story never told.”

   ~ Larry , December, 2007
 

In reply to by shizzledizzle

tmosley topspinslicer Wed, 06/27/2018 - 09:18 Permalink

If you actually LISTENED to the link provided, you would understand a little bit about Trump's procedure.

He doesn't bring in people he agrees with. He brings in people he DISAGREES with, and DEBATES them. The best ideas win and he is willing to change his mind.

You people are so fucking small minded it's hard to even communicate with you. Feel like Dr. Dolittle.

In reply to by topspinslicer

Serfs Up Wed, 06/27/2018 - 08:26 Permalink

Wall Street has all the power.  They just dial the futures down a bit and - BINGO! - US policy is set on a different course.

Fuck this system.

DingleBarryObummer Wed, 06/27/2018 - 08:31 Permalink

Why is China being "targeted specifically" or "not targeted specifically" even relevant?  China will be affected either way. 

If anything the markets should get more spooked because it means Trump admin is going to be protectionist against multiple countries.

Hubbs Wed, 06/27/2018 - 08:31 Permalink

Might as well have Homer Simpson run the show. "Eenie-meenie-minee-moe- Doh" makes more sense than the way things are being run now.

Chaos in a government that is incestuously corrupt and doesn't know what they are doing. 

Jazzyg Wed, 06/27/2018 - 08:32 Permalink

protecting corps from offshore entities is NOT germane to the bigger picture

The Crash is Still Coming....today's news is nothing but another nothing burger 

Son of Captain Nemo Wed, 06/27/2018 - 08:34 Permalink

Otherwise known as the Mn-Douche-in  "B-L-I-N-K"!...

Say it again to our Zionist owners....

No cheap oil and gas at home "anymore "that for some reason keeps compelling you going on 17 years with money you no longer have to loot it unsuccessfully from everyone else abroad that has it... And the PHYSICAL Gold, Silver, Platinum and Palladium you no longer have to pay for it with!... 

NO "TICKEE" to the SHOW!!!

P.S.

Just more proof that when our government sold out the most important manufacturing base of our IT tech sector(s) to the Chinese and Indians almost 2 decades ago actually believing they could keep controlling it with the "$a piece of paper" with nothing backing it other then a "slogan" LOST EVERYTHING in both the "short" and "long" term!...

And more proof of the fine line between hubris and total and complete eccentric insanity!

El Hosel Wed, 06/27/2018 - 08:57 Permalink

Nothing like smell of back tracking in the morning, unless it's the Great Orangeholeyo doing the backstroke in the big house on the hill.

To Hell In A H… Wed, 06/27/2018 - 10:01 Permalink

Bluff and rigging is all Uncle Scam has via its Jewish agents and Goyim traitors. Keep up the good work Trumptards. A bunch of deplorable Cabbage brains who knowingly support the Jewish agenda, in exchange for promises, you dumb cunts. Where's the wall? Where are the jobs? Trade war? lol THE EMPEROR HAS NO FUCKING CLOTHES!