Beijing now has strong new powers to punish firms for pulling manufacturing out of China. Multinationals are increasingly caught in a web of coercion and complex rules as they try to operate across the US, EU and China.
When Western firms pull production out of China or buy fewer parts from there in order to be less dependent on the country, this is called decoupling or de-risking.
And you would think that China can’t stop the rest of the world from decoupling, right? Tell that to Beijing.
Chinese authorities blocked Meta’s $2 billion (€1.7 billion) takeover of the artificial intelligence (AI) startup Manus last month, sending a clear signal that even deals structured outside China's borders are no longer safe.
Manus is headquartered in Singapore, but has strong Chinese roots. China viewed the firm as one of its strategic assets in the global AI race and blocked the deal on national security grounds.
