China Reportedly Restricts U.S. Investment in AI Startups

U.S.-China technology competition has expanded from chip export controls to capital and technology flows. The United States has already restricted investment in Chinese semiconductors, quantum technology and certain AI fields. Meta’s December 2025 announcement that it would acquire China-linked AI startup Manus for more than $2 billion further fueled Beijing’s national security concerns over the outflow of technology, talent and data.

Bloomberg reported on April 24, 2026, citing people familiar with the matter, that regulators including China’s National Development and Reform Commission had told Moonshot AI and StepFun to seek approval before accepting U.S. investment in fundraising rounds. Similar restrictions apply to ByteDance transfers of existing shares to U.S. investors. The report did not disclose the amounts involved.