*TRUMP'S TARIFF THREAT&*

New Trump tariff threat overshadows strong China factory, investment data.

CHINA'S industrial output grew much faster than expected at the start of the year, suggesting the economy may be picking up momentum even as-

US President Donald Trump readies hefty tariffs against one of its most strategic growth drivers -Technology.

Tariffs on tech exports could potentially hit the fastest growing segment of China's industrial sector, an area that the country's leaders have been keen to promote as they push for ''higher quality''  economic growth.

Trump is seeking to impose tariffs on up to $60 billion of Chinese imports in the very near future and will target the technology and telecom sectors, Reuters reported on Tuesday.

The latest US trade threat, which follows the imposition of tariffs on steel and aluminum last week, overshadowed unexpectedly robust Chinese industrial and investment data for the first two months of the year.

''There is a good possibility that Trump will do a lot more against China........

The trade situation is obviously a rising risk and a relatively new challenge for China.'' said economist Kevin Lai at Daiwa Capital Markets in Hong Kong.

Industrial output in January and February rose 7.2 percent from the same period a year earlier, the  National Bureau of Statistics said on Wednesday, surpassing-

Analysts estimates for a rise of 6.1 percent and picking up sharply from 6.2 percent in December.

Analysts had expected a slight stumble due to a crackdown on heavily polluting industries, but the data showed-

*China's steel output rose to its highest in months as mills prepared for a seasonal pick-up in construction in spring*.

Coal and power output were also up sharply, possibly reflecting a spell of bitterly cold weather.

Reflecting China's growing focus on the production of higher-value goods, the output of computers, telecommunications equipment and other electronics rose 12.1 percent on year, extending a long period of double-digit growth.

Output of industrial robots rose around 25 percent. [Agencies]