In a possible sign of deteriorating U.S. – China trade relations, China’s sovereign wealth fund China Investment Corp (CIC) has sold its equity holding in Blackstone Group LP, the U.S. private equity firm said in a filing, ending an 11-year investment, according to the New York Times.
CIC’s $3 billion purchase of a 9 percent stake in Blackstone in mid-2007 was among the wealth fund’s first investments.
U.S. – China relations have recently grown tense with the U.S. imposing tariffs on steel and aluminum imports, while China has implemented strict capital controls to stem the flow of money outside of the country and into investments in foreign assets.
The total transaction value of newly announced Chinese acquisitions in the United States in 2017 dropped by 90 percent compared with the previous year, to $8.7 billion, according to the Rhodium Group, a data provider.