Chinese state-backed funds are halting new investments in United States private equity.
According to the Financial Times on Monday, this marks a fresh escalation in China’s response to US President Donald Trump’s trade offensive.
The report added that several large Chinese investors have recently stopped committing capital to funds managed by US-based private equity firms, a move driven by pressure from Beijing.
In some cases, investors are also asking to be excluded from US deals altogether, even when the investment is led by non-American buyout firms.
This comes as trade tensions between the world’s two largest economies continue to mount.
In the past three weeks, the Trump administration has introduced tariffs of up to 145% on Chinese goods, while China has responded with levies reaching 125%.
Earlier this month, China restricted local companies from investing in the US amid a tariff war.
