Chinese authorities plan to restrict the ability of the country’s technology companies—including its most prominent AI startups—to raise U.S. capital without government approval, according to Bloomberg.
Chinese agencies, including the National Development and Reform Commission (NDRC), have in recent weeks advised a number of private companies to reject U.S.-sourced capital in investment rounds unless they have direct permission from the authorities, the agency’s sources note.
According to them, such instructions were received, in particular, by Moonshot AI—the developer of the Kimi chatbot, which is preparing for an IPO—as well as the AI startup StepFun.
Regulators have also decided to impose similar restrictions on ByteDance Ltd., the owner of TikTok and the country’s most valuable startup. Authorities do not want the company, which also operates one of the country’s most popular chatbots, to allow U.S. investors to participate in secondary share offerings without government approval, sources say.
The main goal of these restrictions is to prevent U.S. investors from acquiring stakes in companies in sensitive sectors where national security is a priority, they note.
The new measures stem from Meta Platforms Inc.’s $2 billion acquisition of the Chinese AI startup Manus, announced last December. Chinese authorities launched an investigation, believing the deal could violate technology export control rules and national security requirements.
Initially, the deal was viewed as a benchmark for startups with global ambitions, but concerns subsequently arose regarding the transfer of valuable AI technologies to a geopolitical rival.
