China restricts US-bound investments

China has restricted local firms from making new investments in the United States, people familiar with the matter said, in a move that may bolster Beijing’s position in future trade talks with the Trump administration. Regional branches of the National Development and Reform Commission (NDRC) were recently told to suspend approvals for outbound US investments, sources said. The reason for the halt and its duration remain unclear. China’s outbound investments into the US totaled USD6.9bn in 2023. Existing commitments and holdings, including US Treasuries, are not expected to be affected. The NDRC and Ministry of Commerce have not commented. The move comes as US-China tensions escalate, with Washington imposing new tariffs. US equity futures and European stocks fell after the news.