China Plans to Restrict Tech Companies from Accepting US Investment, Including AI Startups
Chinese regulators plan to restrict top tech companies, including AI startups, from accepting US funding without approval to protect national security.
📋 Article Processing Timeline
- 📰 Published: April 24, 2026 at 23:00
- 🔍 Collected: April 24, 2026 at 23:32 (31 min after Published)
- 🤖 AI Analyzed: April 25, 2026 at 00:08 (36 min after Collected)
Central News
(CNA, Beijing, 24th, Foreign Dispatch) Bloomberg News, citing people familiar with the matter, reported that China plans to restrict top technology companies, including artificial intelligence (AI) startups, from accepting investments from US funds without approval from authorities.
Reuters cited the report noting that regulatory agencies, including China's National Development and Reform Commission (NDRC), have recently instructed several private tech companies to reject US funds during financing rounds unless explicit approval is obtained.
According to the report, Chinese AI startups such as Moonshot AI and StepFun have received this directive; meanwhile, TikTok's Chinese parent company, ByteDance, was also notified that US investors should not be allowed to trade the company's shares on the secondary market without approval.
The report emphasized that these measures are intended to prevent US investors from acquiring shares in sensitive technology companies crucial to China's national security.
Prior to this, Meta, the parent company of Facebook, announced late last year that it would spend over $2 billion to acquire Manus, an AI startup with a Chinese background, prompting Beijing to launch an investigation into foreign investments in Chinese companies and technology exports. Some fear this deal could encourage other Chinese startups to transfer advanced technology abroad.
Earlier this year, Washington also cited national security concerns to impose restrictions on US investments in certain Chinese AI, semiconductor, and quantum technology companies.
China's NDRC, the Chinese Embassy in the US, StepFun, ByteDance, Meta, and Moonshot AI have yet to respond to Reuters' requests for comment. Bureaus under the US Treasury and Commerce Departments have also declined to comment temporarily. (Translated by Hung Chi-yuan) 1150424
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(CNA, Beijing, 24th, Foreign Dispatch) Bloomberg News, citing people familiar with the matter, reported that China plans to restrict top technology companies, including artificial intelligence (AI) startups, from accepting investments from US funds without approval from authorities.
Reuters cited the report noting that regulatory agencies, including China's National Development and Reform Commission (NDRC), have recently instructed several private tech companies to reject US funds during financing rounds unless explicit approval is obtained.
According to the report, Chinese AI startups such as Moonshot AI and StepFun have received this directive; meanwhile, TikTok's Chinese parent company, ByteDance, was also notified that US investors should not be allowed to trade the company's shares on the secondary market without approval.
The report emphasized that these measures are intended to prevent US investors from acquiring shares in sensitive technology companies crucial to China's national security.
Prior to this, Meta, the parent company of Facebook, announced late last year that it would spend over $2 billion to acquire Manus, an AI startup with a Chinese background, prompting Beijing to launch an investigation into foreign investments in Chinese companies and technology exports. Some fear this deal could encourage other Chinese startups to transfer advanced technology abroad.
Earlier this year, Washington also cited national security concerns to impose restrictions on US investments in certain Chinese AI, semiconductor, and quantum technology companies.
China's NDRC, the Chinese Embassy in the US, StepFun, ByteDance, Meta, and Moonshot AI have yet to respond to Reuters' requests for comment. Bureaus under the US Treasury and Commerce Departments have also declined to comment temporarily. (Translated by Hung Chi-yuan) 1150424
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The text, images, and audio/video on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.