U.S.-China tensions took a new turn after reports emerged that the White House is discussing ways to limit U.S. capital flows into China.
According to this article from Bloomberg, measures being discussed include delisting Chinese companies from U.S. stock exchanges and putting limits on U.S. government pension funds’ investments in China. While no decisions have been made yet, reports of the discussions were enough to send U.S.-listed Chinese stocks lower in Friday’s trading.
Alibaba dropped as much as 6.1% on the news, while Chinese coffee chain Luckin Coffee fell 7.2%. JD.com and Baidu were down 6.2% and 4.2%, respectively.
Talk of the restrictions comes as the U.S. and China have been embroiled in a nasty trade war, with each country levying tariffs on hundreds of billions of dollars of each others’ goods. The two nations are expected to resume trade talks next month.