Meta pokes holes in China's great AI firewall

Reuters Breakingviews reports that China has ordered Meta Platforms to unwind its $2 billion acquisition of AI startup Manus, which had moved operations to Singapore. The directive, issued by the National Development and Reform Commission on April 27, highlights Beijing’s tightened control over overseas exits by strategic tech firms and complicates recovery of funds from earlier backers. The move underscores frictions between China’s desire for global champions and its insistence on retaining domestic control, likely deterring entrepreneurs from relocating abroad and weighing on venture flows. Market implications include greater regulatory risk for deals involving Chinese-origin AI firms, potential diplomatic friction with the U.S., and renewed investor scrutiny of cross‑border tech M&A and China‑linked funding channels.