China Restricts Investments by Local Companies in the US

Bloomberg revealed that China has decided to restrict investments by its local companies in the United States, a move aimed at strengthening its negotiating position in any future trade talks with the Trump administration.

Sources reported that the National Development and Reform Commission has instructed several of its branches to halt the registration and approval of companies seeking to invest in the US market.

Despite the new restrictions, the sources reported that there are no indications that existing Chinese investments or Chinese holdings of financial assets such as US Treasury bonds will be affected at this time.

Trump announced on Wednesday that China will face a 34% tariff, in addition to the 20% he imposed earlier this year, bringing the total new tariffs to 54% and approaching the 60% he threatened during his election campaign.

For its part, China demanded on Thursday that the United States immediately cancel its latest tariffs and vowed to take countermeasures to protect its interests, following US President Donald Trump’s announcement of comprehensive tariffs on all US trading partners around the world.