China moves to block tech firms from taking US money without government approval

China plans to block tech companies from accepting US capital without government approval, according to Bloomberg. China's National Development and Reform Commission (NDRC) has reportedly told several private companies in recent weeks to reject US funding in their financing rounds. Among those affected are AI startups Moonshot AI and Stepfun, as well as TikTok parent company ByteDance, according to people familiar with the matter.

The move was triggered by Meta's $2 billion acquisition of AI startup Manus, announced in late 2025. The deal prompted an investigation in Beijing over potential illegal foreign investments and technology exports. While Manus was registered in Singapore, its founders were Chinese. Critics in China accused the deal of handing valuable AI technology to a geopolitical rival. The new rules could further cut off China's tech sector from Western venture capital.