Beijing has just introduced new regulations that give it a remarkable power: the ability to punish companies for business decisions made outside China. If a multinational firm decides to move its factory out of China, or simply buy fewer Chinese components, China can now penalize it.

At the same time, China has blocked Meta — the company behind Facebook and Instagram — from buying a ChineseAI startup called Manus for $2 billion. This is a clear signal that Beijing intends to have a say in major tech deals, including those involving American companies.

What does all this mean for Western countries efforts to decrease their dependance on China? And which path will Europe take?

 

This video summary was created by AI from the original DW script. It was edited by a journalist before publication