China holds back investments in the USA

China has restricted investments by local companies in the United States, which could give Beijing more leverage in future trade negotiations with the Trump administration. 

The National Development and Reform Commission (NDRC) has instructed its branches to temporarily stop approving applications for investments in the United States, without specifying the reasons and duration of this measure. Employees were warned not to disclose their names when discussing this topic.

China has previously imposed restrictions on foreign investments, citing threats to national security and capital flight. However, the new steps reflect rising tensions between the world's largest economies amid increased tariffs. According to the latest data, China's outbound investment in 2023 amounted to $6.9 billion.

So far, these restrictions do not affect the existing obligations of Chinese firms in the United States and other countries, as well as the purchase of financial assets, including US Treasury bonds. The reasons for the NDRC decision remain unknown, as well as its possible duration.