PE Firms Feel Chill on China Investing as Biden Crackdown Nears

Money managers on Wall Street and in Silicon Valley are learning once again that investing in China can be fraught.

The Biden administration is close to completing an executive order that would curb US investment in China’s tech industry, foreshadowing a further slowdown in bets on the world’s second-largest economy.

Uncertainty over policy related to China has already contributed to a decrease of capital flowing into the Asian country. In recent years, money-losing buyouts and Beijing’s intervention into deals have diminished firms’ appetite to take majority stakes in Chinese companies. They were the targets of just 0.29% worth of deals ...