Key Points:
- China’s top economic planner declared that opening up remains the country’s basic state policy.
- The government clarified that it has never required domestic technology firms to reject foreign investment.
- NDRC spokesperson Li Chao stated that China supports its enterprises in integrating into global innovation networks.
- Officials emphasized that foreign investment must comply with local laws and not threaten national security.
China’s top economic planner declared on Friday, May 22, 2026, that opening up remains the country’s basic state policy. The National Development and Reform Commission (NDRC) clarified that the government has never required its domestic technology companies to reject foreign investment.
NDRC spokesperson Li Chao delivered these remarks during a high-profile press conference in Beijing. Li emphasized that China actively supports its domestic enterprises as they integrate into the global innovation network. He stated that the government encourages companies to engage in mutually beneficial international exchanges and strategic cooperation.
The economic planner’s official clarification serves as a direct response to rising global anxieties and recent media reports. Just last week, reports suggested that Beijing had begun instructing prominent local artificial intelligence startups—including Moonshot AI and Stepfun—to reject venture capital coming from the United States. Analysts feared those rumored restrictions would further isolate China’s recovering technology sector from essential foreign backing.
Those rumors originally gained traction after the NDRC blocked Meta Platforms’ planned $2 billion acquisition of the Singapore-incorporated artificial intelligence startup Manus. The state planner prohibited the deal over concerns of potential technology leaks to a geopolitical rival. The sudden block of a completed transaction had sent a chill through the local startup scene, leading many to believe that Beijing was closing its doors to foreign tech investors.
Li Chao addressed these concerns by outlining the legal boundaries for international capital. He stressed that while China welcomes outside partners, all foreign investments must comply with Chinese laws and regulations. Most importantly, these financial transactions must not harm China’s national security or its core national interests. The government will intervene decisively only when a deal threatens these boundaries.
To reassure global markets, the spokesperson promised that China will continue to implement its established Foreign Investment Law. The government aims to protect the legal rights of foreign investors while continually improving the local business environment. He added that the state will work diligently to properly manage economic risks without creating unnecessary hurdles for legitimate businesses.
Foreign venture capital has played a massive role in building China’s technology sector over the past two decades. Much of the early funding for giants like Alibaba and Tencent originated from American pension funds, endowments, and global venture firms. Completely cutting off this capital would starve young Chinese startups of the financial resources they need to compete against well-funded Western rivals.
China’s leadership recognizes that true technological progress requires international cooperation. Forcing companies to operate in complete isolation would ultimately hurt China’s own goal of becoming a global leader in artificial intelligence and semiconductors by 2030. Industry groups argue that without access to global capital and talent pools, local innovation will inevitably slow down.
Economic analysts believe the NDRC’s public clarification will help restore some confidence among international investors. By explicitly stating that Beijing does not bar tech companies from accepting foreign capital, the government hopes to calm the markets. This message of openness comes at a critical time as the country seeks to attract long-term investments to stabilize its domestic economy.
While the government maintains its right to block specific high-risk acquisitions such as the Meta-Manus deal, Friday’s press conference shows that China is not seeking a complete tech decoupling from the West. The NDRC wants to assure the global business community that as long as foreign capital respects local laws and national security, China’s door will remain open for mutually beneficial cooperation.
