China’s Tech Acquisition Blocks Undermine U.S. Firms—Why Washington Shouldn’t Copy Beijing’s Playbook

Earlier this week, the People’s Republic of China blocked Meta from acquiring Manus, an AI startup that developed an advanced AI agent capable of completing complex tasks. Manus relocated last summer from China to Singapore, a move reportedly approved by Chinese regulators. Meta had announced its $2 billion acquisition of Manus in December 2023, calling it a strategic move to bring “one of the leading autonomous general-purpose agents” to billions of users and millions of businesses.

The Chinese government was less enthusiastic. In January 2024, China’s Ministry of Commerce launched a regulatory investigation into the deal, citing broad authority over “enterprises engaging in overseas investment, technology export, cross-border data transfer, cross-border mergers and acquisitions…must comply with Chinese laws and regulations.” On Monday, the National Development and Reform Commission, home to the Working Mechanism for Foreign Investment Security Review, ordered the deal unwound.

This is the latest in a series of moves by China to curb the global ambitions of American tech giants. In 2023, China’s State Administration for Market Regulation forced Intel to abandon its $5.4 billion acquisition of Tower Semiconductor, an Israeli chipmaker with an office in Shanghai, by delaying merger approval for 18 months.

How U.S. Antitrust Enforcement Backfired

While frustration with China’s use of merger controls is understandable, Western policymakers have inadvertently enabled Beijing’s rise by weaponizing antitrust laws against pro-competitive deals. A stark example is the collapse of iRobot.

In August 2022, Amazon offered to buy the American robotics company, which despite pioneering the Roomba vacuum cleaner, was losing ground to Chinese state-backed competitors. iRobot’s stock had fallen by half since 2021, and its financial instability was evident. Yet, rather than a clear case of anticompetitive harm, the Federal Trade Commission (FTC), led by then-Chair Lina Khan, launched an investigation in September 2022. Citing concerns from U.S. and European regulators, Amazon withdrew its $1.4 billion bid in January 2024.

The consequences were immediate. iRobot cut 31% of its workforce and by December 2025, the company was drowning in hundreds of millions of dollars in debt. By January 2026, it filed for bankruptcy—only to be “rescued” by Shenzhen Picea Robotics, a Chinese robotics firm. Today, iRobot operates as a wholly owned subsidiary of Picea Robotics.

Why the U.S. Should Avoid China’s Approach

The lesson is clear: American technology firms are under pressure from abroad, but misguided antitrust policies at home only hand market share to adversaries. Rather than adopting a “big is bad” approach, U.S. regulators should pursue policies that protect innovation, deter unfair competition, and prevent adversaries from gaining control over critical technologies.