CCP Restricts Chinese Enterprises from Investing in the U.S.

Photo: On April 5, 2018, a truck moves a shipping container at the port of Lianyungang, China. (Photo by VCG/VCG via Getty Images.)

[People News] According to Bloomberg, citing informed sources, the Chinese Communist Party (CCP) has begun restricting domestic enterprises from investing in the United States. This move is seen as part of Beijing's strategy to gain additional leverage in negotiations with the Trump administration.

According to a report from Radio Free Asia (RFA), sources revealed that several departments under China’s National Development and Reform Commission (NDRC) have received directives in recent weeks to suspend the registration and approval processes for companies intending to invest in the U.S. This policy shift highlights the escalating tensions between the world’s two largest economies. So far, there are no indications that the restrictions will affect Chinese enterprises that have already completed investments in the U.S. or impact China’s holdings of U.S. Treasury bonds and other financial assets. However, the specific reasons for the NDRC’s suspension of investment applications, as well as the duration of the restriction, remain unclear. Neither the NDRC nor the Ministry of Commerce has responded to Bloomberg’s requests for comment.

RFA previously reported that as President Trump plans to implement "reciprocal tariffs" on U.S. trade partners this Wednesday, China may once again be included on the list for tariff increases. In response, Chinese Premier Li Qiang stated at the "2025 China Development Forum" that China (the CCP) is prepared to deal with "unexpected external shocks." Bloomberg also noted that amid ongoing capital outflows from China, Beijing has recently intensified scrutiny over outbound corporate investments.

According to data from China’s Ministry of Commerce, China's outbound direct investment reached $177.29 billion in 2023, marking an 8.7% increase from the previous year. However, most of these funds were directed toward projects in developing countries under the Belt and Road Initiative, with nearly 80% of the investments flowing into Asian countries. Meanwhile, Chinese investment in the U.S. declined by 5.2% year-over-year, accounting for only 3.9% of China’s total outbound investments.