China's blocking of Meta's US$2 billion acquisition of AI startup Manus, a move preceded by investigations and travel bans on its founders, signals a new era in China-US business relations. While seemingly disruptive, this action reflects Beijing's strategic approach to foreign investment and its growing assertiveness on the global stage.

Beijing’s decision last Monday to block Meta’s US$2 billion acquisition of the Chinese-founded AI start-up Manus came as little surprise. The central government had already flagged its investigation and barred the company’s two founders from leaving the country. At first glance, the intervention appears disruptive to Chinese firms seeking foreign capital and US companies eyeing investments in China. However, a deeper look reveals this as emblematic of a new normal in China-US business ties,...