China has taken bold steps restricting local companies, including both small and multinational corporations from investing in the US. The restrictions come ahead of the Liberation Day, where Trump claimed the US will dictate and dominate global trade wars. The Xi Jinping administration pulled the unexpected move on Trump to leverage potential trade negotiations with the White House. The development could make China take the upper hand as the US will lose out on massive investments in the homeland.
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JUST IN: 🇨🇳🇺🇸 China restricts companies from investing in the US.
— Watcher.Guru (@WatcherGuru) April 2, 2025
Top branches of China’s economic planning agency, the National Development and Reform Commission were instructed to not sanction approval for companies that are looking to invest in the US, reported Bloomberg according to people familiar with the matter. The restriction of capital outflow takes Trump head-on as China is now openly retaliating against the tariffs. However, Trump might come back harder at China for restricting companies from investing in the US.
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Trade War Intensifies: China Restricts Local Companies From Investing in the US
Trump is all set to unleash reciprocal tariffs on several countries on Wednesday hailing it ‘Liberation Day’. The tariffs will also be hit on China among other nations where several goods will be taxed to enter the US. The move by China to restrict companies from investing in the US could make the stock market open in the red. The development adds fuel to the already tense market where the two biggest economies are clashing with each other.
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While China is restricting companies from investing in the US, India is doing the opposite. Trump announced that India plans to lower tariffs on goods entering the country ahead of Liberation Day. “I think I heard that India, just a little while ago, is going to be dropping its tariffs very substantially (on Liberation Day). I said, why didn’t somebody do this a long time ago. A lot of countries are going to be dropping their tariffs,” said Trump during a press conference.