Private equity firms are finding it nearly impossible to exit their investments in China, even as other forms of dealmaking have rebounded globally, according to the Financial Times Companies report. This paralysis contrasts sharply with the broader market recovery, where mergers and acquisitions activity has picked up significantly outside of China. The core issue stems from Chinese regulatory constraints and capital controls that restrict the repatriation of profits, trapping billions in illiquid assets. Market analysts warn this stagnation could force some firms to write down values or delay exits until policy shifts, potentially reshaping the global PE landscape.