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.
Analysis of Dealogic and PitchBook data found that 10 major global private capital firms – including KKR, Warburg Pincus, Blackstone, Carlyle, TPG, EQT, Bain Capital, Advent International, Apollo and CVC – made no publicly disclosed new equity investments in mainland China during the first seven months of 2026.
The slowdown marks a sharp reversal from earlier years. The same group completed three publicly disclosed Chinese equity investments in 2025 and two in 2024, compared with around a dozen deals, including early-stage investments, as recently as 2021.
Investors say geopolitical uncertainty and increased intervention by Chinese authorities are making the market harder to navigate for western private equity firms and their limited partners.
Beijing blocked Meta’s proposed $2bn acquisition of China-founded AI start-up Manus in April, while Chinese criticism has delayed CK Hutchison’s planned sale of a portfolio of international ports, including assets around the Panama Canal, to a consortium led by BlackRock.
The difficulties extend beyond new investments. The same 10 firms recorded no publicly disclosed completed exits from mainland Chinese portfolio companies in 2025, as weaker economic growth and elevated US interest rates compounded an already challenging environment for private equity realisations.
The retreat from China contrasts with continued fundraising momentum elsewhere in Asia. EQT recently closed a record $15.6bn Asia-Pacific private equity fund, while Blackstone completed fundraising for a $13.1bn Asia-focused vehicle in June.
