China has stopped approving outbound investments for companies looking to set up or expand operations in the US amid trade negotiations between the world’s two largest economies, Nikkei Asia reported.
Local Chinese government and the state economic planner, the National Development and Reform Commission, have caused such approvals since April, according to sources.
The decision entails investments directed towards establishing new companies or expanding existing operations within the US market.
It is unclear how long the restrictions on corporate investments will remain in place, which come at a time when Beijing and Washington are seeking to ease trade tensions, sources added.
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