US Treasury Department is working on restrictions that will not allow firms that have at least 25% of Chinese ownership to invest into American corporations having significantly important industrial technologies, Reuters writes.

This step will further escalate trade conflict between US and China that threatens financial markets and global growth, experts think.

Tariffs on $34 billion Chinese imports will be valid from July 6.

Restrictions of US Treasury Department will influence key sectors that China tries to develop within its “Made in China 2025” initiative. Among other goals this plan aims at developing China’s capabilities in regards to technologies, aerospace sector, engineering, pharmaceuticals, advanced energy, robots and other high-tech areas. US Department of Commerce together with National Security Council proposes to strictly control export of exactly these technologies to China.