China plans curbs on U.S. funding for tech firms after Meta’s $2 billion deal, Bloomberg reports
China is preparing to tighten controls on U.S. investment in its technology sector, requiring government approval for companies—especially high-profile AI startups—to accept American capital, according to Bloomberg, which cited people familiar with the matter.
Agencies including the National Development and Reform Commission have told several private firms that funding rounds involving U.S.-origin capital should not proceed unless explicitly approved by Beijing, Bloomberg reported. Moonshot AI, which is considering an initial public offering, and fellow startup StepFun were among those that received this guidance, the report said.
Similar restrictions have been decided for ByteDance, the owner of TikTok, with regulators seeking to ensure the company does not approve secondary share sales to U.S. investors without government sign-off, according to Bloomberg. The measures aim to prevent U.S.
investors from acquiring stakes in sectors Beijing views as tied to national security priorities, the report added. Bloomberg said the push was driven in part by Facebook-parent Meta Platforms Inc.’s recent $2 billion acquisition of startup Manus, which prompted a Chinese investigation into alleged illegal foreign investment and criticism that valuable AI technology had been lost to the United States.
Beijing has previously moved to restrict a type of Chinese business incorporated overseas from pursuing listings in Hong Kong, a step that could threaten a longstanding conduit to foreign capital for Chinese firms, according to the report.
If implemented as described, the reported guidance signals a stricter approval process for U.S.-linked financing rounds and secondary sales involving Chinese tech companies, particularly in areas deemed sensitive by Chinese authorities.