Beijing’s move to halt Meta’s Manus acquisition sharpens the U.S.-China AI rivalry and signals a tougher push for sovereign control over advanced artificial intelligence.

China competition has expanded beyond chips and models to areas of engineering and product design, analyst says.

Chinese authorities have reportedly instructed domestic companies in advanced technology sectors, including artificial intelligence (AI), not to attract U.S. capital without government approval. This move follows controversy over Meta (formerly Facebook)’s recent acquisition of Chinese AI startup Manus,