China is reportedly cracking down on domestic companies doing business in the US as the two world's largest economies prepare to escalate a trade war.
Beijing's regulators have been told to refrain from granting approvals for Chinese companies that want to invest in the US in recent weeks. This was reported by Bloomberg News.
According to the outlet, the move aims to give China more leverage in future negotiations with the Trump administration.
President Trump will embody plans to impose widespread tariffs at a press conference from White House Rose Garden at 4pm on Wednesday
Chinese companies invested $6.9 billion in the US in 2023, figures cited by Bloomberg News.
China's move to cut investment probably won't affect existing commitments from mainland companies, and that will affect China's purchases and holdings of the US Treasury and other financial products, sources told Bloomberg.
The post has been seeking comment from the Chinese government and the White House.
Last week, China's regulator Delayed $23 billion sales at dozens of ports around the world – Includes two important ports on the Panama Canal – to a group led by US asset manager BlackRock.
CK Hutchison, a Hong Kong-based conglomerate managed by 96-year-old billionaire Li Ka-Shing, announced earlier this month it plans to sell 43 port facilities worldwide.
However, the state administration for China's market regulation unexpectedly launched an investigation into a potential violation of China's anti-unit law on Friday, effectively halting trading.
Controlling the port of the Panama Canal has become a geopolitical hot potato since Trump announced his intention to reaffirm America's control over strategic waterways.
According to the Wall Street Journal, Chinese national president Xi Jinping is reportedly “angrily” that CK Hutchison sold the operations of the Panama Canal Port.
Last month, Trump raised tariffs on Chinese goods to 20% while struggling imports from Canada and Mexico with a 25% tax.
Beijing retaliated with tariffs of up to 15% on a wide array of US farm exports.
It also expanded the number of US companies to make controls and other restrictions about 20 times.
“If war is what the US wants, whether it's a tariff war, a trade war, or another kind of war, we're ready to fight to the end,” the US embassy in China posted on X.
