Xi Tests China’s Reach by Blocking Meta Deal That’s Already Done

China has sought for years to exert influence over business deals beyond its home turf. Still, its decision to press Meta Platforms Inc. to unwind a $2 billion acquisition of AI startup Manus marks a step unlike anything it’s tried before.

The country’s powerful state planner decreed Monday that the deal must be canceled — four months after it was sealed. In doing so, it’s targeting a US tech juggernaut with little to no business operations in China and a startup that, while originally from China, had legally moved to Singapore.