The original WSJ story was titled: Trump Plans New Curbs on Chinese Investment, Tech Exports to China.
US Trade Representative Robert Lighthizer recently called China's treatment of US intellectual property "the most sinful" aspect of the US-China relationship. The ceiling may end up lower than that, according to people familiar with discussions finalizing the plans.
U.S. officials have highlighted Beijing's "Made in China 2025" industrial development plan as a source of concern since they say it is a map for dominating key high tech industries from space to telecommunications to robotics to electric cars.
The bill would allow the Committee on Foreign Investment in the United States (CFIUS) to review transfers of minority interests in companies dealing with critical infrastructure or critical technology as opposed to full acquisitions.
The Trump administration is also working on new export rules that would prevent those technologies from being shipped to China, the person said. Those briefed on this week's action said the Treasury limits will be rolled out in phases, meaning not all Made in China 2025 sectors will be covered at once.
Jyrki Katainen, the EU's vice president on jobs and economic growth, added that actions like Trump's unilateral tariff hikes against China showed that WTO rules on global trade had to change, the Associated Press reported.
The two powers usually find themselves on opposite sides in economic disputes.
That follows Trump's threat to hike tariffs on Chinese imports worth up to $450 billion over complaints Beijing steals or pressures foreign companies to hand over technology.More news: Philadelphia 76ers trade 39th pick to the Lakers for future second, cash
Trump has threatened to impose tariffs of 10 percent to 25 percent on up to $450 billion of Chinese goods. Some U.S. steel and aluminium tariffs went into effect in April and additional tariffs begin in July.
Trump has threatened to strike back against China's retaliation to the United States tariffs that are due to take effect July 6 - potentially escalating the tariffs to $450 billion in Chinese goods. Remember that mid-term elections [in the U.S.] are coming up.
President Xi Jinping's government has no plan to retaliate against US companies operating in China because that would run counter to Beijing's goal of attracting foreign investment, the newspaper reported, citing two Chinese government sources.
A spread between approval and disapproval ratings of the U.S. President had reached its narrowest since March 2017, they noted.
"We've got trillions of dollars seeking our crown jewels of technology", the newspaper quotes White House trade adviser Peter Navarro as saying.
The vice president of the European Union's governing body says Europe and China will form a group aimed at updating global trade rules to address technology policy, subsidies and other emerging complaints in a bid to preserve support for worldwide commerce.
The White House is also expected to unveil new rules later this week that would restrict Chinese investment in USA technology such as robotics and aerospace.
The planned United States restrictions on Chinese investments in "industrially significant technology" are in large part fueled by American concerns about "Made in China 2025", Beijing's plan to boost industries like robotics, electric cars and aerospace with the aim of becoming a global leader in those areas.