China rejects claims of curbing US tech funding as Beijing pursues self-reliance

China’s top economic planner denied pressuring domestic tech companies to turn down foreign investment amid rising concerns sparked by its recent blocking of Facebook owner Meta Platforms’ proposed buyout of Chinese-founded AI start-up Manus.

“We have never required Chinese tech firms not to accept foreign investment,” Li Chao, spokesman for the National Development and Reform Commission (NDRC), said at a press conference on Friday. “We support Chinese firms to integrate into the global innovation network and engage in mutually beneficial international collaboration.”

Li’s comment was in response to a question about China’s reported plan to ask tech firms to turn down US capital. Bloomberg reported in April that Chinese regulators, including the NDRC, were planning to restrict China’s top AI firms and other tech companies from accepting US capital without government approval.

The concerns arose after the NDRC announced in late April that it had blocked Meta Platforms’ proposed purchase of Manus, an AI start-up officially registered in Singapore but that developed its products in mainland China. The regulator asked the parties involved in the deal to cancel the transaction.

A separate Bloomberg report on Thursday said that Manus was considering raising around US$1 billion from external investors to meet Beijing’s demand to unwind the takeover, citing anonymous sources.

“Foreign investments need to follow China’s rules and regulations, and should not harm China’s national security and interests,” Li noted on Friday. “China’s door to the world will only be more open.”