Sep 27, 2019

White House weighs limiting U.S. investments in China

President Trump and Chinese President Xi Jinping in Beijing in 2017. Photo: Thomas Peter/Pool/Getty Images

The Trump administration is considering moves that would stem the flow of money from U.S. investors to China, Bloomberg and other news outlets report and Axios has confirmed.

Why it matters: If carried out, the moves would escalate the U.S.-China fight beyond the scope of trade and tariffs.

  • While it would be big blow for China at a time when they are opening up markets to foreign investors, it would also be disruptive to U.S. markets: 156 Chinese companies with a total market capitalization of $1.2 trillion were listed on major U.S. stock exchanges as of February, as the FT points out.

What's being floated:

  • Delisting Chinese firms from U.S. stock exchanges.
  • Banning the U.S. government from including Chinese equities in pension funds.
  • Limiting Chinese companies' inclusion in U.S. stock indices

Worth noting: It's unclear how these measures could be implemented as they're aggressive moves that would face huge backlash from Wall Street.

Go deeper

U.S. ban on Chinese investments would take trade war to a new level

Illustration: Sarah Grillo/Axios

The Carlyle Group's David Rubenstein has called capital one of America's greatest exports, particularly in regards to China. Now there's talk of a blockade.

The big picture: Bloomberg reported on Friday that the White House is considering limitations on U.S. investments in Chinese companies. Several other news outlets reported the same, including Axios. The White House itself did not confirm or deny the reports.

Go deeperArrowSep 30, 2019

China seems unfazed by U.S. threats to limit investor access

Illustration: Lazaro Gamio/Axios

China appears unbothered by news the Trump administration is considering limiting U.S. investors’ portfolio flows into the country.

What's happening: China has been opening its capital markets to foreign investment, and over the past 8 years money flowing into China's stocks and bonds has grown 6-fold to nearly $1.3 trillion, per Wind Information data shared by Seafarer Funds.

Go deeperArrowSep 30, 2019

Chinese consumers shun American products

Illustration: Rebecca Zisser/Axios

American brands are facing challenges in the Chinese market, as trade and geopolitical disputes wage on for the two countries, the Wall Street Journal reports.

Why it matters: Western executives had long-established plans to dominate the Chinese market, but global consumer brands now have a smaller market share in China than at any other time since the last financial crisis, per WSJ.

Go deeperArrowOct 12, 2019