China blocks companies from investing in US: Bloomberg
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The news: China’s top economic planning agency has begun restricting local companies from investing in the US as trade tensions between the two nations continue to escalate.
The context: According to sources cited by Bloomberg, several branches of the National Development and Reform Commission have been told to pause registration and approvals for Chinese firms hoping to invest in the US.
The move may be intended to give Beijing more leverage during trade negotiations with the US.
There is no indication that existing investments by Chinese corporates in the US and elsewhere, nor that purchasing financial products like US treasuries, would be affected. Sources did not state how long the pause is set to last.
The report comes hours before the Trump administration is set to unveil its ‘Liberation Day’ tariffs, which are expected to see the US impose sweeping tariffs on trade partners, likely to include China.
China’s Ministry of Commerce showed that outbound investments to the US fell 5.2% in 2023, despite increasing investment to all other countries by 8.7%.
The source: Bloomberg
