The US is open to arbitrary FDI so it doesn't matter. China's laws are more...complicated. For example, you can't give stock options to non-Chinese employees if your company is Chinese and not already listed, see https://www.chinalawblog.com/2018/03/china-scam-week-part-4-....

I'm not aware of any foreign funded startups in China currently. I mean, there must be some small players with private foreign funding, but it is so easy to get Chinese funding I'm not sure why anyone would even bother.