The world’s biggest buyout firms have avoided new investments in mainland China this year, deepening a dealmaking drought as Beijing tightens scrutiny of foreign investment in sensitive sectors such as AI.
Ten of the largest global private capital firms including KKR, Warburg Pincus and Blackstone have made no new publicly disclosed equity investments in China in the first seven months of 2026, according to an FT analysis of figures from Dealogic and PitchBook.
This compared with just three private equity investments last year and two in 2024, in a sign of how foreign private capital is struggling to get access to the country’s fastest-growing companies.