China to Curb U.S. Investment in Tech Companies

China plans to restrict leading technology firms, including major AI startups, from accepting US capital without government approval, Bloomberg News reported, citing people familiar with the matter.

The increased scrutiny by the National Development and Reform Commission (NDRC) follows Meta’s more than $2 billion acquisition of AI startup Manus in 2025. (Photo: N509FZ, Wikimedia Commons)

Chinese regulators, including the National Development and Reform Commission (NDRC), have recently instructed several private technology firms to reject US investment in funding rounds unless explicitly approved.

AI startups Moonshot AI and StepFun were among those reportedly given such guidance.

ByteDance has also been advised not to allow secondary share sales to US investors without clearance, according to a Reuters report by Abu Sultan and Kritika Lamba.

The increased scrutiny follows Meta’s more than $2 billion acquisition of AI startup Manus in 2025, which triggered concerns over foreign access to sensitive technologies.

For years, US capital has played a major role in China’s technology sector, from venture investments by firms such as Sequoia Capital and Benchmark to partnerships involving companies like Apple, Microsoft, and Tesla.

American pension funds and endowments have also backed China-focused venture funds, helping drive growth across sectors including internet platforms, electric vehicles, and AI.