Chinese tech stocks are sinking after report says the Treasury Department is looking to block Chinese companies from investing in US companies involved with 'industrial significant technology'

REUTERS/Kim Kyung-Hoon

A reporter looks around a display of Microsoft China Center One during a media tour in Beijing April 14, 2015.

• The US Treasury Department is drawing up rules that would prevent firms with 25% or Chinese ownership from invest in US companies involved with "industrial significant technology."
• Chinese tech stocks are getting whacked on the news.

Chinese tech stocks are falling Monday after a Wall Street Journal report said the US Treasury Department is drawing up rules that would prevent firms with 25% or Chinese ownership from invest in US companies involved with "industrial significant technology."

The development comes as the two countries have already been engaged in an escalating tit-fot-tat trade spat. Back in March, President Donald Trump announced new tariffs on imported steel and aluminum. He has since escalated that to threats of tariffs on billions more dollars of goods imported into the US, causing threats of retaliation from China.

Some of the biggest names in Chinese tech are under pressure. Here's the scoreboard:

iQiyi: -9.07%

Baidu: -3.55%

JD.com: -4.16%

CTrip: -4.51%

Tencent: -4.50%

Invesco China Technology ETF: -3.58%

Markets Insider