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Good morning, I’m back to Firstft Asia. In today’s newsletter:
China is pulled back from US private equity investments
CATL’s battery breakthrough
The legacy of Pope Francis
In President Donald Trump’s latest salvo in the trade war, Chinese state-backed funds cut off new investments in US private equity.
What you need to know: In response to pressure from the Chinese government, funds supported by the state have been pulled back in recent weeks from investments in funding from U.S.-headquarters, according to people with knowledge of the issue. People said Chinese investors would no longer make new funding commitments to US companies. Some added that they are retreating from the allocation they had planned if they haven’t made a final commitment yet.
Why China’s funds are being pulled back: Several acquisition executives said Chinese investors have changed their approach to US private equity since the trade war began. China is bearing the brunt of US tariffs announced in the last three weeks, threatening to significantly cut trade between the two largest economies in the world. Trump has imposed new tariffs of up to 145% on Chinese exports, and Beijing retaliated with a 125% tariff.
Why it matters: Over the last few decades, China’s sovereign wealth funds have poured billions of dollars into many of the largest private capital groups in the United States, including Blackstone, TPG and Carlisle Group. Top industry executives said Trump’s fallout from the trade war is driving a valuation of investments. “There are definitely questions from global investors and clients about what’s going on here,” Blackstone President Jonathan Gray said in a revenue call last week.
US-China Trade War: Beijing warns that it will retaliate against countries negotiating trade deals with the US “at the expense of China’s interests.”
Opinion: Ruchir Sharma explains how the trade war sorts the world economy.
Here is the other thing we keep tabs today:
Economic Data: South Korea published PPI inflation rate data for March, while Hong Kong reports monthly labor market figures.
Global Economy: The IMF’s global economic outlook has been published. IMF Managing Director Kristalina Georgieva warned last week that the fund is preparing to cut its growth forecast amid trade disruptions and market volatility.
China – Kenya’s Bond: Kenya President William Root begins his five-day state visit to China.
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Five more top stories
1. China’s CATL has announced an upgraded battery cell that claims to be able to charge electric vehicles faster than its rival BYD. The world’s largest EV battery manufacturer said yesterday that a new version of the flagship Schenk battery cell can offer a range of 520km from just five minutes of charging time. Learn more about CATL breakthroughs.
2. Wall Street stock and the dollar fell amid increasing uncertainty over the US economy as Trump renewed his attack on Federal Reserve Chairman Jay Powell. After the US president strengthened criticism of Powell, the dollar fell to its first low in three years against its large trading partner baskets after strengthening his criticism of Powell, which he called “too late.”
Other US news: Harvard University sued the Trump administration to freeze more than $3 billion in federal funding and block “illegal” efforts to increase government surveillance at venerable agencies.
3. The US and Philippine forces are to conduct their first “full combat tests” to fight together at flashpoints such as Taiwan and the South China Sea. The annual Barikatan exercises of both countries, which began yesterday, combine elements that have been practiced over the past two years. For example, targeting enemy ships with missiles from the coast or protecting the island from attack can result in war scenarios under realistic conditions.
4. The Federal Trade Commission sued the passenger’s app Uber, saying it had made a “false or misleading” claim to the subscription service. The incident shows the Trump administration will continue to crack down on large tech groups despite the recent overtures made by industry executives.
5. Crypto casino take has skyrocketed to tens of millions of dollars a year as gamblers bypass their country’s blocs and bet on unregulated offshore platforms, new data show. Despite being illegal in most countries, bets paid in cryptocurrency last year generated $81.4 billion in total game revenue. This is a five-fold increase since 2022.
Object: Pope Francis, 1936-2025
The reign of Pope Francis, who died at the age of 88, is remembered in a ruthless power struggle between the Vatican and the Liberals and the conservatives who fought at the highest levels of the global Roman Catholic Church.
We’re reading too. . .
The chart of the day
The western automaker will battle China’s domestic rivals at the Shanghai Auto Show this week, launching new software and intelligence features on vehicles produced with local partners as they attempt to make a comeback in the world’s largest automotive market.
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Take a break from the news
Donald Trump appears to have had a major impact on small ski villages in the Swiss Alps. Find out why Beautiful Andermatt saw a huge surge in property demand from US buyers.
