The state-owned China Daily newspaper in a separate editorial also published on Wednesday said that USA industries and workers could eventually "feel the pain" as Trump's policies were affecting global supply chains.
Asian stocks were turning in a mixed performance on Thursday in view of conflicting messages from U.S. President Donald Trump and his aides over whether he would adopt a confrontational approach to limit Chinese investment in America.
"Such legislation will provide additional tools to combat the predatory investment practices that threaten our critical technology leadership, national security, and future economic prosperity", Trump said in a statement.
U.S. Trade Representative Robert Lighthizer lashed out on Tuesday against retaliatory tariffs imposed by the European Union, China and other World Trade Organization members, saying that the United States would "take all necessary actions" to protect its interests. "It vacillates between their feeling pessimistic about it and some sense of encouragement that it won't be as severe as feared", said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
The Asian currency positioning poll is focused on what analysts and fund managers believe are the current market positions in nine Asian emerging market currencies: The Chinese yuan, South Korean won, Singapore dollar, Indonesian rupiah, Taiwan dollar, Indian rupee, Philippine peso, Malaysian ringgit and the Thai baht.
ASIA'S DAY: Japan's benchmark Nikkei 225 index remained nearly flat at 22,270.39 and South Korea's Kospi lost 1.2 percent to 2,314.24. Markets have been pressured by sharp losses in China, where blue chips .CSI300 were near 13-month lows.
Chinese equities have now fallen into so-called bear market territory, having tumbled 20 percent from recent peaks. "Unfortunately, that then overflows into emerging markets and Europe, so it's not a pretty time for investors", said Peter Lowman, chief investment officer at United Kingdom wealth manager Investment Quorum.
Iran’s leaders seek ways to defend economy from U.S. sanctions
Meanwhile, Iranian government leaders have continued calling for Iranian unity in the face of USA attacks. But Trump may be in no hurry to embark on negotiations that might bolster Iranian clerical leaders.
That also contributed to pushing euro zone yields lower DE10YT=RR , with German yields edging toward one-month lows.
In currency markets, trade-sensitive currencies including the Australian and New Zealand dollars lost ground while the safe-haven yen found demand.
South Korea's tech-heavy KOSPI slipped as much as 0.97 percent to hit its lowest in almost 10 months. The dollar index.DXY, which measures the greenback against a basket of six other currencies, was up 0.63 percent at 95.249, on pace for its second straight day of gains.
Beijing is monitoring the impact of the proposed strengthening of the Committee on Foreign Investment in the USA, after Treasury Secretary Steven Mnuchin won an internal fight to stave off an even tougher approach to curbing Chinese investment in U.S. technology. Trump, who withdrew the USA from an Iran nuclear deal in May, is reportedly pushing foreign nations to cut their oil imports from the country to zero by November, when sanctions on Iran's energy sector will kick in again.
Britain's FTSE 100 was up 0.3 percent at 7,559 while Germany's DAX edged up 0.1 percent to 12,250.
US Futures are also pointing lower, with the Nasdaq set to lose 1% at the opening bell.
The yield on 10-year U.S. Treasuries dropped to 2.827 percent, nearing its May 29 low of 2.759 percent as bond prices. Brent crude, used to price global oils, fell 9 cents to $77.37 in London.