China Pauses US Investment Approvals

In a significant move, China has reportedly paused approvals for corporate outbound investments into the United States since April. This decision comes as trade tensions between the two economic powerhouses escalate, with ongoing negotiations struggling to find common ground.

Impact of Trade Tariffs

The halt follows the US President Donald Trump's decision to raise tariffs on Chinese imports to as high as 145% in April. Although a temporary trade truce in June saw tariffs lowered to 55%, the investment restrictions remain firmly in place, casting a shadow over future economic relations.

Decline in Chinese Investments

Chinese investment in the US has seen a dramatic decline, dropping to $3.2 billion last year from its peak in 2016. With the August 12 deadline for extending the trade truce fast approaching, officials from both nations are intensifying their discussions.