The U.S. government is proceeding with talks regarding potential restrictions on portfolio inflows into China, especially focusing on investments by U.S. government retirement funds, Bloomberg News reported, citing people familiar with the matter.
The U.S. Treasury recently denied that the Trump administration is considering forcing Chinese companies to delist from U.S. exchanges.
Contrary to the official position on the matter, officials held meetings to discuss the matter and focused on measures to limit the exposure of U.S. government pension funds to the Chinese market, the unnamed sources told the news outlet. Larry Kudlow organized a policy meeting Oct. 1 that involved members of the Treasury Department and the National Security Council, the sources added.
The U.S. recently added a number of Chinese entities to its trade blacklist over their alleged involvement in human rights violations, a claim China denied, suggesting it may retaliate.
The White House confirmed Oct. 7 that a Chinese delegation will arrive in the U.S. to resume high-level, face-to-face trade negotiations starting Oct. 10.
