Meta-Manus deal reversal: China does not make tech firms reject foreign investment, state planner says

CHINA’S powerful state planner said on Friday (May 22) the government has never required Chinese technology companies to reject foreign investment, responding to a media question about whether Beijing plans to ask Chinese firms to refuse US capital.

In April, Bloomberg News reported that the National Development and Reform Commission (NDRC) and other regulators instructed several private technology firms, including top artificial intelligence startups, to reject US investment in funding rounds unless explicitly approved, citing people familiar with the matter.

“We have never required Chinese technology companies not to accept foreign investment,” NDRC spokesperson Li Chao told reporters during a press briefing.

“At the same time, foreign investment must comply with Chinese laws and regulations and must not harm China’s national security or interests.” The state planner’s denial comes as it looks to manage the fallout of a decision in April to order US tech giant Meta to unwind its acquisition of Chinese artificial intelligence startup Manus, which sent chills across the startup and foreign business communities.

AI and its potential to turbocharge weapons and cyberhacking capabilities have made it a matter of national security for the US and China as they seek to best each other in the frontier technology. REUTERS