Recently, China decided to stop making new investments in US private equity firms. This move is part of China’s response to the trade tensions with the United States. According to the Financial Times, many large Chinese investors have stopped putting money into funds managed by US-based private equity firms. This decision comes after pressure from Beijing.

Some investors are even asking to avoid participating in US deals, even if the investment is being led by non-US companies. This situation is unfolding as trade conflicts between China and the US continue to grow.

Over the last few weeks, the US has imposed high tariffs of up to 145% on Chinese goods, and China has retaliated with tariffs of 125% on US products.