Editorial | Review of Meta-Manus deal a reminder of what’s at stake in US-China rivalry

Increasingly, Chinese authorities have to grapple with the problem of balancing intellectual property protection and national security with the need for businesses to attract capital and talent by expanding overseas. With intense domestic competition, more Chinese firms are going abroad – not just those in AI and advanced chips, but across multiple sectors from commercial drones to telecoms equipment. They have, after all, been told to go out and compete globally.

That has opened up new opportunities but also brings risks. Chinese authorities like promoting the nation’s international business presence and expanding its supply chains, but they also need to worry about protecting intellectual property.

Innovative Chinese firms can attract a lot of foreign interest, including those of unfriendly governments. Whether they compete or relocate overseas, the potential transfer of valuable Chinese technologies – in which local and central governments are likely to have made significant contributions and investments – needs to be guided prudently. Chinese officials might sometimes have to launch investigations, so there is a need to be transparent and predictable about new rules and regulations.

This is a new conundrum for the country, made worse by the increasingly bitter rivalry with the US. What looks like a purely commercial transaction could take on unanticipated geopolitical risks. As Washington has imposed stringent tech export restrictions, China must also protect both its business and national interests. The Manus deal is a timely reminder of what is at stake.