Aston Villa owner Tony Xia has revised plans to spend around £77 million buying Hollywood film studio Millennium Films.
The move follows increased scrutiny by the Chinese government over outbound deals in the entertainment sector.
Tony Xia said in a tweet that he would no longer carry out the acquisition via his firm Recon Wenyuan Cable Co, which is listed on the Shenzhen Stock Exchange, but through a separate business which isn't listed.
The move was because of "the new Chinese policy of film industry restriction", he tweeted.
The Chinese government has been tightening regulation as a result of large deals overseas in sectors like sports, film and property amid concerns over high levels of debt.
Mr Xia also tweeted: "Though there's many things not we like esp. for ppl educated overseas, You still love your home country, and learn to enjoy the life."
Recon Wenyuan announced in February it was planning to buy a 51 per cent stake in Los Angeles-based Millennium Films whose titles include The Expendables and The Hitman's Bodyguard.
The deal has been dropped for now after it could not be completed by a previously agreed deadline of August 31.
Mr Xia bought Aston Villa from Randy Lerner in summer 2016.
