Despite reports on Monday, the White House has decided not to put an outright limit on Chinese investments and will instead use a government panel to evaluate deals.
President Donald Trump said in a statement Wednesday he's decided to rely on updated legislation Congress has made "significant progress" in passing.
As Newsy previously reported, the Trump administration was reportedly planning to announce two new initiatives including blocking firms with at least 25 percent Chinese ownership from investing in U.S. tech companies and barring additional technology exports to China.
Now, the president says he plans to implement the Foreign Investment Risk Review Modernization Act. Trump says FIRRMA will protect the U.S. from foreign investment threats and allow the country to remain committed to open investments.
Treasury Secretary Steven Mnuchin says the move isn't meant to target China, but to protect U.S. technology.
The announcement comes in the midst of a brewing trade war between the U.S. and China.