China's NDRC says foreign tech investment welcome after blocking Meta-Manus deal
Synopsis
China's NDRC publicly denied ever telling domestic tech firms to reject foreign capital — just weeks after blocking Meta Platforms' bid to acquire AI start-up Manus. Manus is now reportedly seeking a US$1 billion independent fundraise to satisfy Beijing's demand to unwind the deal, raising sharp questions about what 'open door' actually means.
Key Takeaways
Li Chao , NDRC spokesman, stated on 22 May 2026 that China has 'never required Chinese tech firms not to accept foreign investment.' The NDRC blocked Meta Platforms' proposed acquisition of AI start-up Manus in late April 2026 , citing national security grounds.
Manus is reportedly considering raising around US$1 billion from external investors to unwind the Meta takeover, according to anonymous sources.
Bloomberg reported in April 2026 that Chinese regulators, including the NDRC , were planning to restrict top AI firms from accepting US capital without government approval.
Manus is officially registered in Singapore but developed its products in mainland China , making it subject to Beijing's regulatory oversight.
Key domestic AI players including DeepSeek , Cambricon Technologies , Moore Threads , and Huawei Technologies operate in the same tightly regulated environment.
China's National Development and Reform Commission (NDRC) has publicly stated that Beijing has never instructed domestic tech companies to reject foreign capital, even as its own recent intervention — blocking Meta Platforms' proposed acquisition of AI start-up Manus — continues to fuel investor unease about the country's openness to cross-border technology deals.
What the NDRC said
Li Chao, spokesman for the NDRC, made the remarks at a press conference on Friday, 22 May 2026. 'We have never required Chinese tech firms not to accept foreign investment,' Li said. 'We support Chinese firms to integrate into the global innovation network and engage in mutually beneficial international collaboration.'
Li added a qualifier that has become a standard condition in Beijing's foreign-investment posture: 'Foreign investments need to follow China's rules and regulations, and should not harm China's national security and interests. China's door to the world will only be more open.'
Why it matters: the Meta-Manus backdrop
The assurances came directly in response to questions about China's reported plan to ask tech firms to decline US capital without prior government approval. Bloomberg reported in April 2026 that the NDRC and other Chinese regulators were preparing to restrict the country's top AI firms from taking US investment without a government sign-off — a report that rattled global venture and strategic investors.
The concern intensified after the NDRC announced in late April 2026 that it had blocked Meta Platforms' proposed purchase of Manus, an AI start-up officially registered in Singapore but whose products were developed in mainland China. The regulator directed all parties to cancel the transaction.
Manus eyes US$1 billion fundraise to unwind deal
A separate report published on Thursday, 21 May 2026, citing anonymous sources, said Manus was reportedly considering raising around US$1 billion from external investors to meet Beijing's demand to unwind the Meta takeover. The fundraise, if confirmed, would rank among the largest single rounds for a Chinese-founded AI start-up this year.
The move would effectively replace Meta's strategic capital with domestic or non-US institutional money — a pattern consistent with Beijing's broader effort to keep sensitive AI assets within its sphere of influence while maintaining a nominally open investment environment.
The competitive backdrop
China's AI sector is home to a dense cluster of state-linked and private players, including DeepSeek, Cambricon Technologies, Moore Threads, and Huawei Technologies, all navigating an environment shaped by US chip-export controls and domestic regulatory priorities. The NDRC's intervention in the Meta-Manus deal signals that even Singapore-registered entities with mainland operational roots are subject to Beijing's national-security review framework.
What's next
Whether Manus successfully closes a US$1 billion independent round will be a key indicator of investor appetite for Chinese AI assets under current geopolitical conditions. Beijing's willingness to approve or expedite such a round will also test the credibility of the NDRC's open-door messaging. Global tech investors and strategic acquirers will be watching for any formal regulatory guidance on the approval process for US capital entering China's AI ecosystem.
Point of View
Particularly in AI. What mainstream coverage underplays is the Singapore-registration loophole being closed: Beijing is signalling that operational geography, not legal domicile, determines jurisdiction. The reported US$1 billion fundraise for Manus is effectively a forced domestication of a globally positioned AI asset, consistent with the broader pattern of China ring-fencing its frontier AI stack from US influence during the chip-war cycle. Investors should read the open-door rhetoric as conditional approval for non-US or passive capital, not a rollback of national-security screening.
NationPress
7 Jul 2026
Frequently Asked Questions
Why did China block Meta's acquisition of Manus?
The NDRC blocked Meta Platforms' proposed purchase of Manus in late April 2026 on national security grounds, directing all parties to cancel the transaction. Although Manus is officially registered in Singapore , its products were developed in mainland China , bringing it within Beijing's regulatory purview.
What did China's NDRC say about foreign investment in tech?
NDRC spokesman Li Chao stated on 22 May 2026 that China has 'never required Chinese tech firms not to accept foreign investment' and that the country's 'door to the world will only be more open.' He added that foreign investments must follow Chinese rules and must not harm national security.
How much is Manus trying to raise after the Meta deal was blocked?
Manus is reportedly considering raising around US$1 billion from external investors to meet Beijing's demand to unwind the Meta takeover, according to a report citing anonymous sources published on 21 May 2026 . If completed, the round would be one of the largest for a Chinese-founded AI start-up this year.
Are US investors banned from investing in Chinese AI companies?
No formal ban has been announced, but Bloomberg reported in April 2026 that Chinese regulators, including the NDRC , were planning to require government approval before top AI firms could accept US capital. The NDRC has not confirmed this plan publicly.
Which Chinese AI companies are affected by these investment restrictions?
The reported restrictions would apply to China's top AI firms, a category that includes players such as DeepSeek , Cambricon Technologies , Moore Threads , and companies in Huawei Technologies' ecosystem. The Manus case suggests that even Singapore -registered entities with mainland operations fall under the same framework.
