ICYMI: China halts U.S.-bound corporate investment amid escalating trade tensions — Nikkei | investingLive

China has suspended approvals for outbound investments by domestic firms seeking to establish or expand operations in the United States, the Nikkei reported Thursday, citing unnamed sources familiar with the matter.

According to the report, local governments and the National Development and Reform Commission (NDRC) — the country’s top economic planning agency — have stopped granting investment approvals for U.S.-bound projects since April. The freeze affects both greenfield investments (such as new factories or offices) and acquisitions of U.S. companies.

The move underscores Beijing’s growing caution in the face of escalating trade tensions with Washington, which have intensified under President Trump’s latest round of tariffs and export restrictions. While the Nikkei report did not specify a formal announcement or timeline, it noted that the restrictions remain open-ended, with no clear indication of when or if they will be lifted.

The investment pause could have significant implications for sectors like technology, electric vehicles, and manufacturing, where Chinese firms have increasingly sought U.S. partnerships or local footprints.

The decision also signals that Beijing is willing to leverage regulatory tools to respond strategically to U.S. trade and investment policy, amid what has become a deepening economic rift between the world’s two largest economies.