Chinese regulators are planning to restrict technology firms, including major AI startups, from accepting U.S. capital without government approval, according to people familiar with the matter. Agencies such as the National Development and Reform Commission have reportedly told private firms to avoid U.S.-sourced funding unless explicitly authorized, with firms including Moonshot AI, StepFun, and ByteDance affected. The move aims to limit foreign stakes in sensitive sectors amid national securit

Chinese regulators are planning to restrict technology firms, including major AI startups, from accepting U.S. capital without government approval, according to people familiar with the matter. Agencies such as the National Development and Reform Commission have reportedly told private firms to avoid U.S.-sourced funding unless explicitly authorized, with firms including Moonshot AI, StepFun, and ByteDance affected. The move aims to limit foreign stakes in sensitive sectors amid national security concerns and follows scrutiny of the $2 billion Manus acquisition. Regulators are also reviewing overseas structures of “red-chip” firms and tightening oversight of secondary share sales and cross-border capital flows.