China's NDRC says it never required tech firms to offload assets in foreign-investment reviews

China’s National Development and Reform Commission said on May 22 that Beijing has never required Chinese technology companies to reject foreign investment, addressing questions that followed reports and online speculation about tighter scrutiny of foreign capital in the sector. The statement came from the NDRC, China’s top state planner, in response to a media question about whether authorities planned to ask tech firms to refuse U.S. investment. The agency said foreign investment remained subject to Chinese laws and regulations. The clarification was carried by state-backed outlets including Global Times, Xinhua and Reuters. ### What exactly did the NDRC say? The NDRC said on Friday that China had “never required” its technology companies not to accept foreign investment, according to Reuters and state media reports. Xinhua quoted the agency as saying that opening up is China’s “basic state policy.” Global Times reported the same formulation from an NDRC spokesperson and said the comment was made in response to a reporter’s question. (finance.yahoo.com) The agency also said foreign investment in Chinese tech companies must comply with relevant Chinese laws and regulations. ### What reports was Beijing responding to? Reuters said the NDRC’s statement answered questions about whether Beijing planned to ask Chinese firms to refuse U.S. capital. (finance.yahoo.com) Reuters linked the clarification to earlier reporting that Chinese authorities were considering curbs on U.S. investment in some technology companies. The NDRC did not announce a new rule change in the statement described by Reuters, Xinhua and Global Times. (globaltimes.cn) Instead, the agency framed its answer as a clarification of existing practice and said any foreign investment still had to meet regulatory requirements. ### What rules still apply to foreign investors? China’s current foreign-investment market-access framework includes the 2024 version of the special administrative measures, or “negative list,” jointly issued by the NDRC and the Ministry of Commerce. (finance.yahoo.com) The NDRC says that version took effect on Nov. 1, 2024. The Foreign Investment Law, published in English on the NDRC’s website, says China adheres to a policy of opening up and encourages foreign investors to invest in the country, while also requiring compliance with information-reporting and other legal obligations. (finance.yahoo.com) ### Why did this clarification draw attention now? Reuters and other outlets published the NDRC comment as scrutiny of cross-border AI and technology deals remained elevated. (ndrc.gov.cn) The question put to the agency referred specifically to whether Chinese companies could be told to refuse U.S. investment, placing the clarification in the context of foreign participation in China’s technology sector. (en.ndrc.gov.cn) Xinhua’s wording underscored continuity rather than a new opening. The agency’s statement said China’s basic policy had not changed, while leaving intact the requirement that investments comply with the country’s legal and regulatory framework. ### Where can investors look for the formal framework? The NDRC’s website hosts the text of the 2024 foreign-investment negative list and related policy materials. (finance.yahoo.com) The order publishing that list says it was approved by the NDRC and the Ministry of Commerce and came into force on Nov. 1, 2024. The next reference points are the Foreign Investment Law and any subsequent updates to the negative list or sector-specific review rules issued by the NDRC, the Ministry of Commerce or other Chinese regulators. (china.org.cn) As of May 22, the NDRC’s public clarification said tech firms were not under a blanket requirement to reject foreign investment. (en.ndrc.gov.cn) (ndrc.gov.cn)