Post Content China tightens control on AI investments, curbing U.S. access to sensitive technologies amid rising security concerns. (Image: Reuters)
China plans to restrict top technology firms, including leading AI startups, from accepting US capital without government approval, Bloomberg News reported on Friday, citing people familiar with the matter.
Chinese regulators, including the National Development and Reform Commission, have recently instructed several private technology firms to reject US investment in funding rounds unless explicitly approved,, the report said.
AI startups Moonshot AI and StepFun were among the companies that received the guidance, the report said, adding that TikTok owner ByteDance has also been told it should not allow secondary share sales to US investors without clearance.The measures are aimed at preventing US investors from gaining stakes in sensitive technologies linked to China’s national security, Bloomberg reported.
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NDRC, the Chinese Embassy in Washington, StepFun, ByteDance, Meta and Moonshot AI did not immediately respond to Reuters requests for comment.
The US Department of the Treasury and the Department of Commerce’s Bureau also did not respond immediately.
The heightened scrutiny follows Meta’s more than $2 billion acquisition of AI startup Manus in 2025, which triggered investigations into foreign investments in Chinese companies and technology exports amid concerns the transaction could spur other startups to move advanced technology offshore.
For years, U.S. capital has played a significant role in China’s technology sector, ranging from venture investments by firms such as Sequoia Capital and Benchmark to deep operating ties involving companies such as Apple, Microsoft and Tesla.
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American pension funds and endowments have also been major backers of China-focused venture funds, helping fuel growth across internet platforms, electric vehicles and AI.
Washington also imposed its own restrictions earlier this year, limiting US investment in certain Chinese AI, semiconductor and quantum firms, citing security concerns.
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