Beijing’s decision last Monday to block Meta’s US$2 billion acquisition of the Chinese-founded AI start-up Manus came as little surprise. The central government had already flagged its investigation and barred the company’s two founders from leaving the country. At first glance, the intervention appears disruptive to Chinese firms seeking foreign capital and US companies eyeing investments in China. However, a deeper look reveals this as emblematic of a new normal in China-US business ties,...