The order, one of Beijing’s strongest moves yet against a foreign purchase of a Chinese tech company, came on Monday from China’s National Development and Reform Commission (NDRC), which said foreign investment in Manus would be prohibited under Chinese law, and the deal must be unwound.

Beijing is now concentrating on AI talent, software and intellectual property, and areas once taken over by chip restrictions now include artificial intelligence, as competition between China and the United States gets stronger

Chinese authorities began examining the acquisition in January, shortly after Meta completed the purchase in December. The review later intensified, and in March, Manus co-founders Xiao Hong and Ji Yichao were reportedly called to Beijing for talks with regulators and then barred from leaving China.

Neither founder publicly responded to requests for comment.

Meta has also not issued a public response.

Manus had drawn attention in China after launching what it described as a general AI agent in 2025. State-backed media had commended the company as a possible successor to DeepSeek, one of China’s most-watched AI firms.

Unlike model developers who build large language systems from scratch, Manus focused on agent software designed to complete multi-step tasks with limited human input. These tasks include coding, research and workflow automation.

Before the takeover, Manus raised $75 million in funding led by Benchmark in May 2025.

The company later shut its China offices and moved operations to Singapore, where its parent company, Butterfly Effect, was restructured. That move was seen as an attempt to attract foreign capital while easing both U.S. and Chinese restrictions.

Chinese regulators now appear determined to challenge that route.

The practice, sometimes called “Singapore washing”, involves Chinese-founded startups shifting legal structures or operations abroad while keeping roots in China. The latest development with Beijing reveals that strategy may no longer guarantee protection from investigations.

Startups moving overseas may not be enough as authorities may now demand proof of where management is headquartered, where research is done, where data is stored and who controls the company’s technology.

The China ruling could also create some problems for Meta, as some Manus staff had already moved into Meta’s Singapore offices, while parts of the startup’s work were reportedly being integrated into Meta projects.

Any reversal may now require separating teams, contracts and technology already tied together.

This is coming weeks before a planned summit in Beijing between U.S. President Donald Trump and Chinese President Xi Jinping in mid-May.

That meeting was expected to cover trade and technology tensions, but this issue now adds another case.

China has previously criticised foreign-linked deals involving strategic assets, but forcing the breakup of a completed transaction is rare.

China does not want core AI assets leaving its reach, no matter where a company later relocates.

The post China Orders Meta to Reverse $2bn Deal for AI Startup Manus appeared first on Tech | Business | Economy.

Speaking in Beijing on Thursday, the Ministry of Commerce confirmed it will assess whether the transaction aligns with Chinese laws covering export regulations, technology transfers, overseas investment and data movement. 

The review follows Meta’s agreement to buy Manus in a deal reported to be worth more than $2 billion.

At a regular press briefing, ministry spokesperson He Yadong said regulators would work across departments to determine whether the acquisition complies with existing regulations. 

He stressed that companies involved in foreign investment and technology-related transactions must operate within China’s legal framework.

Manus, now based in Singapore, has roots in China. It emerged from Butterfly Effect, also known as Monica.Im, before becoming a standalone company and relocating earlier this year. 

That development is now a big part of the investigation. Regulators are examining whether the transfer of staff, data and core technology from Beijing to Singapore required an export licence before the Meta deal was finalised.

Beijing has increased oversight of AI models, agents and related intellectual property, treating them as assets with national security implications. 

The Manus case will help clarify how those regulations apply to Chinese-founded startups that move overseas ahead of foreign acquisitions.

The startup received huge attention after launching its first AI agent in March, a tool designed to handle tasks such as market research, coding and data analysis. 

Within eight months, Manus said it had crossed $100 million in annual recurring revenue, a pace it described as unprecedented. The company also drew global interest after raising $75 million in a funding round led by U.S. venture capital firm Benchmark in April.

Meta has already made known how it views the deal. “Manus’ exceptional talent will join Meta’s team to deliver general-purpose agents across our consumer and business products, including in Meta AI,” the company said in a statement in December.

Chinese officials have been careful to frame the review as regulatory rather than punitive. “The Chinese government consistently supports enterprises in conducting mutually beneficial transnational operations and international technological cooperation in accordance with laws and regulations,” He Yadong said.

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The accusation, which was posted Thursday on Trump’s social media platform, has left the tech and political sectors in shock, increasing evaluation on one of America’s most strategically important chipmakers.

“The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem. Thank you for your attention to this problem!” Trump posted on Truth Social.

Trump offered no specific evidence to back his claim, but his statements come in the wake of some Republican issues on the company. 

On Wednesday, Senator Tom Cotton had written to Intel’s board demanding clarity on Tan’s personal and professional ties to Chinese entities. 

Cotton’s letter raised red flags about Tan’s leadership at Cadence Design Systems—where tools were reportedly sold to a Chinese military-linked university—and his subsequent investments in Chinese tech firms through his venture capital arm, Walden International.

A Reuters report detailed that Tan had channeled over $200 million into various Chinese companies, with several reportedly linked to the country’s military or national security infrastructure. Cotton has questioned whether such entanglements are compatible with Intel’s receipt of federal funds under the CHIPS and Science Act.

“The new CEO of @intel reportedly has deep ties to the Chinese Communists. U.S. companies who receive government grants should be responsible stewards of taxpayer dollars and adhere to strict security regulations. The board of @Intel owes Congress an explanation,” Cotton posted on X, attaching his formal letter.

Tan, who assumed the role of CEO in March 2025, has been steering Intel through a major overhaul in the face of stiff competition from Nvidia, AMD, and TSMC. 

His tenure has so far involved aggressive cost-cutting: thousands of job losses, cancelled factory expansions, and efforts to offload non-core business units. His stated aim is to restore Intel’s reputation as a leader in chip engineering, a position it has steadily lost over the last decade.

But these leadership decisions now risk being overshadowed by the political fallout. Intel’s strategic importance to U.S. national security is significant. It is the single largest beneficiary under the CHIPS Act, with $8.5 billion earmarked for new manufacturing facilities across Arizona, New Mexico, Ohio, and Oregon. 

The controversy around Tan’s alleged links to China could compromise the company’s ability to maintain bipartisan confidence and secure future federal support.

Intel has not yet responded to multiple requests for comment on the matter. Tan himself has remained silent as calls for transparency mount.

Meanwhile, investors are reacting. Intel’s stock fell nearly 5% in premarket trading following Trump’s post, reflecting growing anxiety over potential leadership instability and the political issues surrounding the company. 

With Washington increasingly wary of Beijing’s influence in the tech supply chain, the timing of these revelations, whether substantiated or not, puts Intel in an uncomfortable spotlight.

The post Donald Trump Demands Resignation of Intel CEO Over Alleged China Ties appeared first on Tech | Business | Economy.

The company confirmed a $4.5 billion charge in the first quarter of its 2026 fiscal year, along with $2.5 billion in unsold H20 chips due to licensing hurdles imposed by the U.S. government. Together, that’s a $7 billion dent in just one quarter.

The restrictions, enforced under the Trump administration and still holding strong, target high-performance AI chips like Nvidia’s H20, a product critical to data centres in China. 

CEO Jensen Huang said: “The $50 billion China market is effectively closed to us. The H20 export ban ended our Hopper data centre business in China. We cannot reduce Hopper further to comply.”

For a company riding high on global AI demand, the setback is huge. The second quarter’s projected revenue stands at $45 billion, but Nvidia has already priced in the impact of the licensing blockade.

Nvidia is now pushing a lower-powered GPU dubbed “B20” to meet Chinese demand while skirting around restrictions. Meanwhile, AMD is responding with its own China-targeted chip, the Radeon AI PRO R9700, as firms scramble to protect market share without breaching U.S. export policy.

And yet, these workarounds might not be enough to close the gap. There were recent reports that Nvidia is also developing a budget AI chip based on its latest Blackwell architecture. Estimated to cost between $6,500 and $8,000, it’s still priced well below the flagship H20 GPU, which typically sells for $10,000 to $12,000.

The geopolitical challenge over AI supremacy is changing strategy. Huang stressed that “China is one of the world’s largest AI markets and a springboard to global success with half of the world’s AI researchers based there; the platform that wins China is positioned to lead globally today.”

Huang also welcomed the Biden administration’s decision to abandon a proposed Artificial Intelligence Diffusion Rule, which would have introduced even tighter limits. 

But he was clear about the bigger problem: “The question is not whether China will have AI; it already does. The question is whether one of the world’s largest AI markets will run on American platforms. Shielding Chinese chip makers from U.S. competition only strengthens them abroad and weakens America’s position.”

What we’re seeing is a fracture in the global AI value chain. Nvidia, which had become a pillar in this ecosystem, now finds one of its most important markets functionally out of reach. That’s a change no patchwork of scaled-down GPUs can fix.

The post Nvidia Projects $8bn Revenue Loss as U.S. Restrictions Block AI Chip Sales to China appeared first on Tech | Business | Economy.

The Ministry of Commerce in Beijing stated:

“China firmly opposes any party reaching a deal at the expense of China’s interests. If this happens, China will never accept it and will resolutely take countermeasures.”

That message came on the heels of increasing chatter that the U.S. government is aggressively courting trade partners, promising tariff relief in return for cutting economic ties with China—especially in sensitive sectors like manufacturing and tech.

Washington is engineering a campaign. From Japan to South Korea, and now eyeing Taiwan and India, the U.S. is making trade deals a loyalty test.

Reports suggest American negotiators have floated ideas like “secondary tariffs” for countries that don’t toe the anti-China line, and are discouraging nations from becoming backdoors for re-routed Chinese exports.

Vietnam, clearly paying attention, has reportedly tightened border checks, blocking goods suspected of being Chinese in origin from sneaking into the U.S. under another flag.

Japan and South Korea, economic heavyweights with deep ties to both Washington and Beijing, have been drawn into early negotiations. In fact, South Korea’s top trade envoy is already in Washington to start talks. These aren’t your typical trade discussions—they’re geopolitical chess matches.

China sees it for what it is—a move to isolate, frustrate, and ultimately weaken its global economic reach. And it’s not just pushing back with statements. Beijing has a history of acting fast and strategically when crossed.

In 2016, South Korea agreed to host a U.S. missile system. The result? Chinese tourists vanished, South Korean businesses in China faced new obstacles, and bilateral relations went cold.
This time around, the stakes are even higher.

China’s grip on critical raw materials gives it an advantage it didn’t fully leverage before. It’s already restricted exports of gallium and germanium, key ingredients in chips and defence systems.

And now it’s clamping down on rare earth exports too, vital for everything from smartphones to electric vehicles.

Beijing’s strategy is two-pronged: resist American pressure and tighten its embrace of other regions. Xi Jinping’s recent tour of Southeast Asia and Europe wasn’t just ceremonial.

Visits to Vietnam, Malaysia, and Cambodia signalled a pivot—China is doubling down on regional cooperation and strengthening trade alliances where U.S. influence is less entrenched.

But here’s where things get complicated. Many countries are stuck in the middle. African nations, for example, are facing a high-stakes choice. U.S. overtures come with promises—access, funding, and relief from tariffs.

But China has been a consistent investor in the region, from infrastructure to mining. Trade between Africa and China hit $282 billion last year. That’s not a number you walk away from easily.

There’s also the fear factor. China has a track record of swiftly responding to diplomatic slights with economic punishment. And when Beijing says it will “resolutely take reciprocal countermeasures,” it means it.

Some analysts think the U.S. may struggle to rally a united front. Bert Hofman, former World Bank director for China, said bluntly, “The Trump administration’s inconsistent policy approach undermines its credibility.”

Still, he acknowledged that China’s trade surplus is a real sore point—and that the country must boost domestic demand to restore balance.
The next wave of global trade might just be about influence, leverage, and who gets to call the shots.

The post China Threatens Countermeasures Against Nations Striking U.S. Trade Deals at Its Expense appeared first on Tech | Business | Economy.

While local competitors soared, Apple’s numbers dropped 9% compared to the same period last year — down to 9.8 million units.

This is the seventh consecutive quarter Apple has seen its shipment volume shrink in China. For a company that once shaped global tech culture, that’s a worrying trend.

At the heart of the issue? Pricing. Apple is sticking to its high-end strategy, but that playbook isn’t working anymore — at least not in China.

A new wave of government subsidies, rolled out in January, is giving Chinese consumers a 15% rebate on devices priced below 6,000 yuan (about $820). Most iPhones don’t qualify. But brands like Xiaomi do, and they’re cashing in.

Xiaomi shipped 13.3 million phones — a 40% jump from the same time last year. That puts it comfortably ahead of Apple in market share, as more Chinese buyers choose value over brand prestige.

“The subsidy scheme is clearly designed to boost domestic consumption, but it’s also giving Chinese brands a strong edge,” said IDC analyst Will Wong. “Apple’s premium pricing structure has prevented the U.S. company from capitalising on new government subsidies.”

Overall, China’s smartphone market grew by 3.3% in Q1. So while the pie got bigger, Apple’s slice got smaller. Its market share now sits at 13.7%, down from 17.4% in the previous quarter — a sharp drop in such a competitive space.

Now, to be fair, Apple isn’t doing badly in shipments everywhere. Globally, it shipped 57.9 million phones in Q1 — its best first-quarter performance ever, with a 10% increase year-on-year.

But China isn’t just another market. It’s the world’s largest consumer electronics battlefield, and losing ground here sends a strong signal.

Chinese consumers are changing. They’re more price-sensitive, more nationalistic, and less dazzled by the Apple logo. And with brands like Xiaomi, Oppo, and Vivo offering sleek design and solid performance at lower prices — backed now by government support — Apple’s old charm isn’t quite cutting it.

The company has a decision to make. Stick to its high-margin strategy and risk further erosion in one of its most important markets? Or rethink its approach to pricing and product positioning in China?

Anyways, this is beyond being one bad quarter. It’s about whether Apple can still compete in a market that’s no longer waiting to be impressed.

The post Apple’s Q1 Shipments in China Drop 9% to 9.8m as Xiaomi Soars 40% to 13.3m appeared first on Tech | Business | Economy.

With CEO Tim Cook recently visiting Beijing, the investment aims to align the company’s Chinese supply chain with global clean energy goals.

The investment is the second phase of Apple’s China Clean Energy Fund, first launched in 2018. The initial phase mobilised $300 million from Apple and 12 of its suppliers, leading to the development of over 1 gigawatt of solar and wind projects across 14 provinces. 

Now, Apple aims to add another 550,000 megawatt-hours of renewable energy to China’s grid, pushing its suppliers further toward sustainable manufacturing.

Jeff Williams, Apple’s chief operating officer, noted the role of Chinese partners in this transition, stating, “Our suppliers in China are promoting world-class progress in the fields of intelligent manufacturing and green manufacturing. With the launch of the second phase of the China Clean Energy Fund, we are honoured to deepen our connection with suppliers across China.”

Apple has kept quiet on which suppliers are part of this new phase, though past participants included major firms like Compal Electronics, Corning, Jabil, and Luxshare. Some of these suppliers have since reshaped their operations—Luxshare, for instance, acquired Pegatron’s iPhone production facility, while Catcher Technology sold key assets to Lens Technology.

This initiative ties into Apple’s environmental strategy. The company has been carbon neutral in its corporate operations since 2020 and is pushing to extend that across its supply chain and products by 2030. In China, about two-thirds of Apple’s manufacturing is already powered by renewable energy, with the company working alongside over 100 suppliers to accelerate the shift.

Cook’s visit to China coincided with the China Development Forum, where he met with senior officials and reiterated Apple’s focus on innovation and sustainability in the country. 

Apple’s green initiatives have previously won global recognition, including a UN Climate Action award, though not without controversy. After announcing the Apple Watch Series 9 as its first carbon-neutral product in 2023, a Chinese environmental group accused the company of “climate-washing.”

Beyond China, Apple’s Supplier Clean Energy Program is pushing its global partners to adopt renewables, revealing the company’s strategy to influence supply chains worldwide.

The post Apple Expands Clean Energy Push in China with $99 Million Fund appeared first on Tech | Business | Economy.

This uptick follows a prolonged slump, with foreign smartphone shipments falling for four consecutive months before December’s modest rebound. 

In November alone, shipments plummeted by 47.4% year-on-year, dropping to 3.04 million units from 5.77 million. 

The current increase brought the total number of foreign smartphone shipments to 3.74 million units, compared to 3.72 million in the same period the previous year.

Apple was particularly affected, struggling with economic stress, reduced consumer spending, and growing competition from local brands like Huawei.

Huawei has strengthened its market presence, recording a 24% increase in smartphone shipments in the same quarter. The company now holds a 17% market share, closely trailing Apple’s 13.1 million units sold in China. 

Huawei’s resurgence has been driven by the introduction of smartphones with locally produced chipsets, which have interested consumers, especially those who favour homegrown technology.

Apple, in an effort to retain its foothold in China, has partnered with Alibaba to integrate artificial intelligence features into iPhones sold in China, leveraging Alibaba’s technology to better tend to local preferences. However, this initiative remains subject to regulatory approval.

Analysts are cautious about Apple’s prospects in the Chinese market nonetheless. The upcoming iPhone SE4 is not expected to drive high sales, as previous SE models have had limited impact.

Again, speculation that the iPhone 17 series may rely entirely on eSIM technology is not sitting well with consumers, given China’s limited carrier support for eSIM.

Foreign smartphone brands have also been struggling with economic issues. A downturn in consumer spending, coupled with the economic slowdown, has dampened demand. 

In November, foreign smartphone shipments in China saw a steep decline, plummeting by 47.4% year-on-year to 3.04 million units. This was the fourth consecutive month of declining sales for non-Chinese brands.

Apple responded to these difficulties with a rare four-day promotional campaign, offering price reductions of up to 500 yuan (£55) on its flagship devices.

However, the effectiveness of such short-term discounts remains uncertain, especially as Huawei continues to gain traction in the premium segment.

The post After Four Months of Decline, Foreign Smartphone Shipments in China Edge Up by 0.6% in December appeared first on Tech | Business | Economy.

According to data from the China Academy of Information and Communications Technology (CAICT), shipments of these devices fell to 3.04 million units, down from 5.77 million units a year earlier. 

This is the fourth consecutive month of declining sales for foreign smartphones in the world’s largest smartphone market, China.

November’s figures continued to move downwards, following a 44.25% year-on-year drop in October. Apple, the highest foreign smartphone manufacturer in China, is faced with economic issues, reduced consumer spending, and increased competition from local brands such as Huawei.

Economic downturn appears to be a big factor in dampening consumer interest. Chinese household spending has been impacted by deflationary matters, with consumer prices in November falling to their lowest levels in five months. 

To counter these issues, Apple initiated a rare four-day promotional campaign in China, offering price cuts of up to 500 yuan (£55) on its flagship models.

Meanwhile, Huawei has strengthened its place in the premium smartphone market. Since re-entering this segment in August 2023 with its domestically-produced chipsets, the company has reported significant growth.

In the third quarter of 2024, Huawei’s smartphone sales in China surged by 42% year-on-year, while Apple’s sales dipped slightly by 0.3%, according to the International Data Corporation (IDC). Earlier in the year, Apple briefly dropped out of China’s top five smartphone vendors but managed to regain its footing in subsequent months.

Even with the sharp decline in foreign-brand shipments, overall smartphone sales within China, including domestic brands, experienced a less severe contraction. 

Shipments fell by 5.1% year-on-year in November, totalling 29.61 million units. The taking over of local manufacturers like Huawei is impacting the competitive space, challenging global brands to reassess their strategies in the region.

The post Apple, Other Foreign Smartphone Brands See Market Share in China Hit New Low | 47.4% Drop in November appeared first on Tech | Business | Economy.

The discounts apply to a range of iPhone models and other Apple products when purchased through specific payment methods, including WeChat Pay and Alipay. 

The flagship iPhone 16 Pro and iPhone 16 Pro Max, originally priced at 7,999 yuan ($1,093) and 9,999 yuan ($1,367) respectively, will see a 500-yuan ($68.50) reduction, while the iPhone 16 and iPhone 16 Plus will receive a 400-yuan discount. 

Added to these, older iPhone models, MacBooks, and iPads are included in the promotion, with price cuts ranging between 200 and 300 yuan.

Recently, competition in China, the world’s largest smartphone market, has been on a high level, with domestic tech giants like Huawei addressing cautious consumer spending in a slowing economy.

Huawei has leveraged aggressive pricing strategies, such as discounts of up to 3,000 yuan on premium devices, to attract consumers. The company’s smartphone sales in China surged by 42% in the past year, while Apple had a 0.3% decline in the third quarter of 2024, according to IDC.

Again, China’s inflation reached a five-month low in November, weakening consumer confidence and prompting buyers to tighten their budgets. Apple’s premium pricing faces resistance in this environment, pushing the company to adopt flexible strategies like targeted discount campaigns.

Nonetheless, Apple seeks to stay resilient. The launch of its iPhone 16 on September 20, 2024, coincided with Huawei’s introduction of a tri-foldable phone, increasing the rivalry between the two tech giants. 

Early sales data from Counterpoint Research showed a 20% increase in iPhone 16 sales during its first three weeks compared to the previous. This success helped Apple maintain its place among China’s top five smartphone brands, with a 15.6% market share as of Q3 2024, despite a slight year-on-year dip of 0.5 percentage points.

China’s smartphone market saw overall growth of 3.2% in Q3 2024, with total sales reaching 68.78 million units. While Apple remains the second-largest smartphone vendor in the country, Huawei’s innovative product launches have impacted the competition in the space. 

The Apple discount initiative is a calculated move to attract price-sensitive consumers, bolster its market share, and strengthen its standing in the market.

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