2 min learnApr 24, 2026 05:45 PM IST
China plans to limit high know-how corporations, together with main AI startups, from accepting US capital with out authorities approval, Bloomberg Information reported on Friday, citing folks conversant in the matter.
Chinese language regulators, together with the Nationwide Improvement and Reform Fee, have just lately instructed a number of non-public know-how corporations to reject US funding in funding rounds until explicitly authorised,, the report mentioned.
AI startups Moonshot AI and StepFun have been among the many corporations that acquired the steering, the report mentioned, including that TikTok proprietor ByteDance has additionally been instructed it mustn’t permit secondary share gross sales to US traders with out clearance.The measures are geared toward stopping US traders from gaining stakes in delicate applied sciences linked to China’s nationwide safety, Bloomberg reported.
NDRC, the Chinese language Embassy in Washington, StepFun, ByteDance, Meta and Moonshot AI didn’t instantly reply to Reuters requests for remark.
The US Division of the Treasury and the Division of Commerce’s Bureau additionally didn’t reply instantly.
The heightened scrutiny follows Meta’s greater than $2 billion acquisition of AI startup Manus in 2025, which triggered investigations into overseas investments in Chinese language corporations and know-how exports amid considerations the transaction may spur different startups to maneuver superior know-how offshore.
For years, U.S. capital has performed a major position in China’s know-how sector, starting from enterprise investments by corporations such as Sequoia Capital and Benchmark to deep working ties involving corporations corresponding to Apple, Microsoft and Tesla.
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American pension funds and endowments have additionally been main backers of China-focused enterprise funds, serving to gasoline progress throughout web platforms, electrical autos and AI.
Washington additionally imposed its personal restrictions earlier this 12 months, limiting US funding in sure Chinese language AI, semiconductor and quantum corporations, citing safety considerations.
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