Global private equity firms retreat from China as geopolitical risks mount
The world's largest private equity firms have effectively stepped back from new investments in mainland China this year, highlighting the growing challenges facing international investors as Beijing increases scrutiny of foreign capital in strategically sensitive industries, according to a report by the Financial Times.
Global private equity giants have curtailed their new investments in mainland China as geopolitical tensions intensify, according to a Financial Times report. A study of Dealogic and PitchBook data revealed that 10 prominent international private capital firms, such as KKR, Warburg Pincus, Blackstone, Carlyle, TPG, EQT, Bain Capital, Advent International, Apollo, and CVC, disclosed no new equity investments in mainland China during the first seven months of 2026.
This marks a significant shift from previous years. While the same group had completed three equity investments in China in 2025 and two in 2024, they made around a dozen deals in 2021. Investors attribute the slowdown to mounting geopolitical uncertainty and heightened Chinese government intervention. Beijing's rejection of Meta's $2bn acquisition of China-founded AI startup Manus in April and delays in CK Hutchison's planned sale of international ports to BlackRock are notable examples.
The challenges extend beyond new investments, as the 10 firms also recorded no completed exits from Chinese portfolio companies in 2025, amid weaker economic growth and rising US interest rates. This retreat from China contrasts with continued fundraising efforts in other Asian markets. EQT recently closed a $15.6bn Asia-Pacific private equity fund, while Blackstone raised capital for a $13.1bn Asia-focused vehicle in June.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
