BEIJING — Chinese billionaire Jack Ma has dropped his bid to buy U.S. money transfer company MoneyGram after Washington rejected the $1.2 billion deal in a fresh example of heightened American scrutiny of Chinese investment.

MoneyGram International Inc. and Ma’s Ant Financial Services Group failed to gain approval from the Committee on Foreign Investment in the United States despite efforts to respond to its concerns, MoneyGram CEO Alex Holmes said in a statement Tuesday. The panel reviews proposed foreign acquisitions of U.S. companies.

The failure is a setback to Ma’s ambitions to expand into global markets.

MoneyGram shares fell 6.8 percent in after-hours trading to $12.40 a share.

Ma is the founder of Alibaba Group, the world’s biggest online commerce platform by total sales. He was among the stream of Chinese business leaders who visited President Trump last January.