China cuts off new investment in US private equity

Good morning and welcome again to FirstFT Asia. In right now’s e-newsletter:

• China pulls again from US non-public fairness investments

• CATL’s battery breakthrough

• The legacy of Pope Francis

Chinese language state-backed funds are chopping off new funding in US non-public fairness, in response to a number of individuals acquainted with the state of affairs, within the newest salvo towards President Donald Trump’s commerce struggle.

What to know: State-backed funds have been pulling back from investing in the funds of US-headquartered non-public capital corporations in current weeks in response to strain from the Chinese language authorities, in response to individuals with data of the matter. Chinese language buyers would now not make new fund commitments to US corporations, the individuals stated. One added that some had been backing out of allocations they’d been planning to make, in instances the place they’d not but made a last dedication. 

Why Chinese language funds are pulling again: A number of buyout executives stated Chinese language buyers had modified their method to US non-public fairness for the reason that commerce struggle started. China has borne the brunt of US tariffs introduced prior to now three weeks that threaten to considerably curtail commerce between the world’s two largest economies. Trump has imposed new tariffs of as much as 145 per cent on Chinese language exports and Beijing has retaliated with 125 per cent tariffs.

Why it issues: In current a long time, Chinese language sovereign wealth funds have poured billions of {dollars} into most of the largest US non-public capital teams together with Blackstone, TPG and Carlyle Group. Prime trade executives instructed the FT that the fallout from Trump’s commerce struggle was prompting some analysis of the place to speculate. “There undoubtedly are questions from international buyers and shoppers about what’s taking place right here,” Blackstone president Jonathan Grey stated on an earnings name final week. 

• US-China commerce struggle: Beijing has warned it can retaliate towards nations that negotiate commerce offers with the US “on the expense of China’s pursuits”.

• Opinion: Ruchir Sharma explains how the commerce struggle will reorder the worldwide economic system — not burn it down.

Right here’s what else we’re preserving tabs on right now:

• Financial knowledge: South Korea publishes March PPI inflation charge knowledge and Hong Kong stories month-to-month labour market figures.

• World economic system: The IMF’s World Financial Outlook is revealed. Kristalina Georgieva, the managing director of the IMF, warned final week that the fund was preparing to cut growth forecasts amid commerce turmoil and market volatility.

• China-Kenya ties: Kenyan President William Ruto begins a five-day state go to to China.

Don’t miss the chance to affix Unhedged’s Robert Armstrong and different FT specialists on Wednesday as they talk about how Trump’s insurance policies are shaping markets in a subscriber-only webinar. Register for free.

5 extra high tales

1. China’s CATL has unveiled upgraded battery cells it claims can provide sooner charging for electrical automobiles than its rival BYD. The world’s largest EV battery maker stated yesterday {that a} new model of its flagship Shenxing battery cell might provide a 520km vary from simply 5 minutes of charging time. Read more about CATL’s breakthrough.

2. Wall Avenue shares and the greenback tumbled amid mounting uncertainty over the US economic system as Trump renewed his assaults on Federal Reserve chair Jay Powell. The greenback fell to a three-year low towards a basket of its massive buying and selling companions after the US president stepped up his criticism of Powell — whom he referred to as “Mr Too Late” — for not chopping charges.

• Extra US information: Harvard College has sued the Trump administration to dam its “illegal” efforts to freeze greater than $3bn in federal funding and improve authorities oversight of the venerable establishment. 

3. US and Philippine forces are to conduct their first “full battle check” for preventing collectively in flashpoints equivalent to Taiwan or the South China Sea. The 2 nations’ annual Balikatan workout routines, which started yesterday, mix components practised over the previous two years — equivalent to targeting enemy ships with missiles from shore or protecting islands from attack — right into a struggle state of affairs underneath sensible situations.

4. The US Federal Commerce Fee has sued ride-hailing app Uber, saying it made “false or misleading” claims about its subscription service. The case indicators that the Trump administration will proceed to clamp down on Massive Tech teams regardless of current overtures made by executives within the trade.

5. Crypto on line casino takings have soared to tens of billions of {dollars} a 12 months, new knowledge confirmed, as gamblers bypassed blocks of their residence nations to wager on unregulated offshore platforms. Regardless of being unlawful in most nations, wagers paid in cryptocurrency final 12 months generated $81.4bn in gross gaming income — a fivefold rise since 2022.

Obituary: Pope Francis, 1936-2025

The reign of Pope Francis, who has died on the age of 88, will probably be remembered for ruthless power struggles and acrimonious doctrinal disputes between liberals and conservatives that had been fought on the highest ranges of the Vatican and the worldwide Roman Catholic Church.

We’re additionally studying . . . 

Chart of the day

Western carmakers will struggle again towards home rivals in China at this week’s Shanghai auto present, launching new software and intelligence capabilities in automobiles produced with native companions as they try a comeback on this planet’s largest automobile market.

Take a break from the information

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