China has introduced powerful new regulations that give Beijing greater authority to punish companies shifting production away from the country, creating fresh challenges for Western businesses operating across the United States, the European Union, and China, according to a report by Deutsche Welle.
As multinational corporations increasingly attempt to reduce dependence on Chinese manufacturing and supply chains — a strategy often described as “decoupling” or “de-risking” — they are becoming trapped in an increasingly complex web of regulations and geopolitical pressure.
Last month, Chinese authorities blocked a reported $2 billion acquisition by Meta involving the artificial intelligence startup Manus, signaling that even deals structured outside China’s borders are no longer beyond Beijing’s reach.
Although Manus is headquartered in Singapore, the company maintains strong Chinese ties. Beijing reportedly viewed the AI startup as a strategic asset in the global artificial intelligence race and halted the deal on national security grounds.
The move followed the rapid introduction in April of China’s new “Regulations on Industry and Supply Chain Security,” measures designed to strengthen the government’s ability to block American technology giants from acquiring advanced Chinese technology.
The latest steps highlight how economic competition between China and Western powers is increasingly extending beyond tariffs and trade disputes into control over technology, supply chains, and strategic industries.
