Chinese state-backed funds are halting new investments in US private equity due to pressures from the Chinese government amid escalating trade tensions with the US. This shift follows recent tariffs imposed by the Trump administration, prompting significant reevaluation among global investors, including Canadian and European pension funds. Historically, Chinese funds like the China Investment Corporation have heavily invested in US private equity, but they are now seeking to diversify away from American markets, reflecting the growing impact of geopolitical factors on investment strategies.