Chinese Investments in US Private Equity Plummet Amidst Trade Tensions and Regulatory Hurdles

Chinese state-backed investments in US private equity are experiencing a significant downturn, driven by escalating political tensions and regulatory challenges. This pullback, witnessed across major sovereign wealth funds, stems from trade restrictions between the US and China, which have seen tariffs imposed exceeding 120% on goods traded between both nations. Several executives, speaking to the Financial Times and other sources, confirm a strategic shift away from US-based private capital firms by Chinese investors.