China blocks Meta AI deal and tightens rules on foreign firms
Updated
Updated · The New York Times · May 11
China blocks Meta AI deal and tightens rules on foreign firms
11 articles · Updated · The New York Times · May 11
The measures come before President Donald Trump meets Xi Jinping in Beijing this week, as both sides prepare for a potentially prolonged economic confrontation.
Beijing is deploying a new legal mechanism to counter US sanctions and signalling greater readiness to retaliate against Western efforts to curb Chinese technology and trade.
The two powers have already escalated with tariffs, rare earth and technology restrictions, and sanctions on major companies, making the summit a test of whether guardrails can be set.
Can Washington and Beijing build AI safety guardrails while waging an intense technological war?
Trapped between US sanctions and new Chinese laws, is it now impossible for global firms to remain neutral?
Is the Global South the true battleground where the US-China economic war will ultimately be won or lost?
China’s 2026 Retroactive Block of Meta’s $2B Manus AI Acquisition: End of Frictionless Cross-Border Tech Deals
Overview
In April 2026, China’s National Development and Reform Commission (NDRC) made a surprising move by retroactively blocking Meta’s acquisition of Manus, signaling a new era of strict scrutiny for global tech deals with Chinese ties. This rare intervention showed that Chinese regulators now look beyond where a company is incorporated, considering factors like the origin of technology, R&D location, and historical operations in China. Even companies with little current presence in China can face regulatory challenges. This shift highlights China’s determination to protect its strategic technologies and reshape the landscape for international technology acquisitions.