China cuts off new investment in US private equity

Good morning and welcome again to FirstFT Asia. In as we speak’s e-newsletter:

• China pulls again from US personal fairness investments

• CATL’s battery breakthrough

• The legacy of Pope Francis

Chinese language state-backed funds are chopping off new funding in US personal fairness, in line with a number of individuals acquainted with the state of affairs, within the newest salvo in opposition to President Donald Trump’s commerce battle.

What to know: State-backed funds have been pulling back from investing in the funds of US-headquartered personal capital companies in current weeks in response to stress from the Chinese language authorities, in line with individuals with information of the matter. Chinese language buyers would not make new fund commitments to US companies, the individuals stated. One added that some had been backing out of allocations they’d been planning to make, in circumstances the place they’d not but made a ultimate dedication. 

Why Chinese language funds are pulling again: A number of buyout executives stated Chinese language buyers had modified their method to US personal fairness for the reason that commerce battle started. China has borne the brunt of US tariffs introduced previously three weeks that threaten to considerably curtail commerce between the world’s two greatest 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 lots of the largest US personal capital teams together with Blackstone, TPG and Carlyle Group. High trade executives instructed the FT that the fallout from Trump’s commerce battle was prompting some analysis of the place to speculate. “There undoubtedly are questions from world buyers and shoppers about what’s occurring right here,” Blackstone president Jonathan Grey stated on an earnings name final week. 

• US-China commerce battle: Beijing has warned it’s going to retaliate in opposition to nations that negotiate commerce offers with the US “on the expense of China’s pursuits”.

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

Right here’s what else we’re holding tabs on as we speak:

• Financial information: South Korea publishes March PPI inflation fee information and Hong Kong reviews month-to-month labour market figures.

• World financial system: The IMF’s World Financial Outlook is printed. 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 hitch Unhedged’s Robert Armstrong and different FT consultants on Wednesday as they focus on how Trump’s insurance policies are shaping markets in a subscriber-only webinar. Register for free.

5 extra prime tales

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

2. Wall Road shares and the greenback tumbled amid mounting uncertainty over the US financial system as Trump renewed his assaults on Federal Reserve chair Jay Powell. The greenback fell to a three-year low in opposition to 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 enhance authorities oversight of the venerable establishment. 

3. US and Philippine forces are to conduct their first “full battle check” for preventing collectively in flashpoints akin to Taiwan or the South China Sea. The 2 nations’ annual Balikatan workouts, which started yesterday, mix components practised over the previous two years — akin to targeting enemy ships with missiles from shore or protecting islands from attack — right into a battle situation beneath real looking 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 Large 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 yr, new information confirmed, as gamblers bypassed blocks of their residence nations to guess on unregulated offshore platforms. Regardless of being unlawful in most nations, wagers paid in cryptocurrency final yr 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, might 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 combat again in opposition to home rivals in China at this week’s Shanghai auto present, launching new software and intelligence capabilities in autos produced with native companions as they try a comeback on the planet’s largest automobile market.

Take a break from the information

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