China’s intervention to block the sale of ManusAI to a US firm highlights the continued primacy of the state in regulating strategic industries. ManusAI, an artificial intelligence company with Chinese origins but headquartered in Singapore, had agreed to a multibillion-dollar acquisition. In April 2026, however, China moved to prevent the transaction on national security grounds.
This case challenges assumptions associated with globalisation, particularly the idea that transnational corporations operate independently of state control. Despite its formal relocation, ManusAI was still considered subject to Chinese strategic interests. This reflects a broader pattern in which states assert jurisdiction over firms based on origin, technology and data, rather than simply legal headquarters.
The decision is part of a wider trend in Chinese policy. Regulatory frameworks introduced in 2026 expanded state oversight of technology transfers, data flows and industrial supply chains. These measures aim to retain control over critical technologies, particularly in areas such as artificial intelligence, where economic and military applications are closely linked.
From a global politics perspective, the case illustrates the limits of a liberal model in which markets and corporations operate across borders with minimal constraint. Instead, states remain central actors, capable of shaping and restricting economic activity in pursuit of strategic objectives. This is especially evident in the digital sphere, where control over data, algorithms and computing infrastructure is increasingly equated with national power.
More broadly, the ManusAI episode reflects China’s emergence as a digital superpower. By asserting control over technological assets, it is actively shaping the global balance of power in the information age. The case demonstrates that globalisation has not diminished state authority, but rather transformed the arenas in which it is exercised.