NDRC official Li Chao said China has never told tech firms to reject foreign capital, while overseas investors continue reducing exposure to Chinese digital infrastructure amid security reviews and regulatory uncertainty.
China’s National Development and Reform Commission said on May 22 that it has never required Chinese technology or information technology companies to reject foreign investment. Li Chao said overseas capital remains welcome if it complies with Chinese law and does not harm national security or national interests, rebutting reports of informal pressure on firms such as ByteDance, Moonshot AI, and StepFun to avoid U.S. funding without approval. The clarification came as scrutiny intensified after the commission said in late April it blocked Meta Platforms from acquiring Manus, a $2 billion artificial intelligence startup, on national security grounds. At the same time, foreign private equity firms are retreating from China’s data center market, reflecting broader concern over cybersecurity rules, data controls, and unpredictable approval standards for sensitive digital infrastructure.