China does not make tech firms reject foreign investment, NDRC says

BEIJING, May 22 (Reuters) - ‌China's powerful ​state ​planner said on Friday 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 U.S. ‌capital.

Last month, 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 U.S. 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 last ⁠month to order U.S. 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 U.S. and China as they seek to ⁠best each other in ‌the frontier technology.

(Reporting ​by Ellen Zhang, Eduardo Baptista, and Ryan Woo; Editing by Christian Schmollinger and Lincoln ‌Feast)

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