China retreats from US private equity investments, FT reports

Source: Reuters

China's state-backed funds are pulling back from investing in the funds of U.S.-headquartered private capital firms amid an escalating trade war between the world's two biggest economies, the Financial Times reported on Monday.

Some of the Chinese funds are also seeking to be excluded from investments in U.S. companies made by private equity firms based elsewhere, the report, which cited seven private equity executives with knowledge of the matter, said.

Multiple buyout executives will not be making new fund commitments to U.S firms, while some are backing out of planned allocations, in cases where they had not yet made a final commitment, the report added.

Their stance comes at a time when U.S. President Donald Trump has singled out China in his trade war by imposing 145% tariffs on Chinese goods, with Beijing retaliating with 125% levies on American products.

-snip-

Read more: https://www.reuters.com/world/china/china-retreats-us-private-equity-investments-ft-reports-2025-04-21/