The United States is planning to use an emergency law in order to ratchet up its scrutiny of Chinese investments in key industries, Bloomberg News reported yesterday, reports AFP from Paris.

The report, which cites eight sources familiar with the plans, said such a move would put “Washington’s trade war with Beijing on a potentially irreversible course”.

“Under the plan, the White House would use one of the most significant legal measures available to declare China’s investment in US companies involved in technologies such as new-energy vehicles, robotics and aerospace a threat to economic and national security,” Bloomberg reported.

Treasury Secretary Steven Mnuchin is expected to push for the plan in a report set for release on June 29, it added.

China’s foreign ministry on Monday said Chinese investment has created jobs and increased tax revenue in the US.

“China-US trade, investment and cooperation are mutually beneficial in nature,” said foreign ministry spokesman Geng Shuang, when asked about the US plans at a regular press conference.