The digital media group has restructured its corporate venturing activities on the same day as China revealed proposals which would place investments under greater scrutiny.

ByteDance, the China-headquartered owner of short-form video app TikTok, has closed its corporate venturing unit, according to media reports from a variety of news outlets today.

News of the move comes on the same day as sources familiar with the matter told Reuters the Chinese government has drafted proposals requiring large internet companies to explicitly seek regulatory approval for any investments.

Founded in 2012, ByteDance has built an offering that includes online properties TikTok (known as Douyin in China), news and information aggregator Toutiao and video sharing platform Xigua Video.

While traditionally not on the level of peers such as internet groups Tencent and Baidu or e-commerce firm Alibaba, ByteDance had ramped up the pace of its investments and has participated in 49 funding deals since the start of 2021 according to Pitchbook data.

In addition to its investments, the company’s exits have included electric vehicle maker Li Auto, which…

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Robert Lavine

Robert Lavine is special features editor for Global Venturing.