AsianFin -- The Chinese government was reported on Wednesday to curb local companies’ investments in the United States ahead of the Trump administration’s new wave of worldwide tariffs.
Credit：The Paper
The National Development and Reform Commission (NDRC), China’s top economic planner has directed several branches these days to hold off on registration and approval for Chinese companies that are seeking to invest in the U.S., Bloomberg cited anonymous sources. The report deemed the suspension as a move that could add Beijing’s leverage for potential trade negotiations with the Trump administration.
There is no sign that existing commitments by Chinese firms outside China, or China’s purchases and holdings of U.S. Treasuries and other financial products would be affected, said the sources.
The NDRC didn’t respond to the report. It’s unclear what sparked the government agency’s aforementioned order or how long the suspension of applications for investment in the U.S. will last. But it was reported that the new move increased uncertainty for firms that work to shift productions abroad to circumvent trade barriers when U.S. President Donald Trump doubled down his tariffs on China.
Trump on Tuesday ordered to impose a 10% tariff on all trading partners and individualized reciprocal higher tariffs on countries with which the United States has the largest trade deficits. Based on the tariff plan unveiled that day, U.S. will slap 34% reciprocal tariffs on China, effective on April 9, at 12:01 a.m. Eastern Time. U.S. Treasury Secretary Scott Bessent confirmed China will face a total tariff rate of 54% since Trump took office.
Chinese Foreign Minister Wang Yi has warned against U.S. tariffs a day before Trump’s annoucement. China has never bowed to hegemony, and will definitely take resolute measures if the U.S. continues to exert pressure or even blackmail, Wang said in an interview with RIA Novosti on Tuesday during his visit to Russia, when asked about where the China-U.S. trade war will go and whether Beijing will further additional tariffs on American goods.
Wang reiterated his accusing that the U.S. returned good with evil and calling that the abuse of fentanyl in the United States is a problem that must be confronted and resolved by the United States itself. The U.S. should remove of all the extra tariffs that were unreasonably imposed, conduct equal consultations with China to seek mutually beneficial cooperation, if Washington really wants to solve the fentanyl issue, Wang said.
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