Opinion | China's AI ‘Hotel California'

The WSJ editorial reports that China’s National Development and Reform Commission reversed Meta’s $2 billion acquisition of AI firm Manus—despite the deal having closed in December—via a one-sentence notice that gave no explanation. The board interprets the move as driven by Beijing’s national‑security anxieties about AI and talent flight, a signal that China may increasingly block foreign M&A in advanced tech. Market implications: elevated regulatory risk for Meta’s China strategy and for cross‑border AI deals could pressure investor sentiment toward META.OQ, raise execution risk for tech M&A, and weigh on valuations of AI startups tied to China. The decision also increases geopolitical uncertainty around access to Chinese AI talent and could deter future foreign investment into the sector.