China Blocks AI Startup Sales Abroad

China has begun using domestic investment review powers to prohibit foreign takeovers of AI firms that originated in China even after they relocate, undercutting offshore exits and the 'Singapore‑washing' route for founders and investors. This dynamic sits alongside U.S. curbs on funding China‑linked AI, creating a bilateral squeeze on cross‑border deals and a re‑sorting of where AI companies can raise capital or be acquired. — If states actively block outbound sales of AI startups, it will accelerate tech sovereignty, reshape venture capital flows, and force corporate restructuring decisions with broad economic and security consequences.