US Dollar Banned Strictly, China Increasingly Aggressively Blocks America

China is tightening access for United States capital to its strategic technology sector. The government of the Bamboo Curtain state is reportedly beginning to prohibit technology companies from accepting investments from the US without official government permission.

This policy has been issued by Chinese regulators, including the National Development and Reform Commission (NDRC), which has requested that several private technology companies reject funds from American investors in funding rounds. Approval can only be granted if the government explicitly permits it.

Several AI startups are said to have already received these instructions. Not only that, the restrictions are also directed at the technology giant that owns TikTok. The Chinese government even does not want secondary share sales to US investors to occur without the state’s approval.

This step aims to limit foreign ownership in technology deemed sensitive and related to national security. Beijing itself wants to close loopholes for American investors to gain access to China’s strategic technology, as quoted from Reuters on Monday (27/4/2026).

This policy emerged after large-scale acquisitions of Chinese AI companies by Western technology giants in 2025. Those transactions, valued at more than US$2 billion, triggered investigations into foreign investments and concerns that China’s advanced technology could flow abroad.

Yet for years, American capital has been the backbone of growth in China’s technology sector. Venture capital investments, operational relationships with global companies, and US pension funds have played a significant role in the development of the internet, electric vehicles, and AI in that country.

Washington had previously been the first to restrict US investments in Chinese AI companies, semiconductors, and quantum computing for national security reasons.