Iron Curtain: China Blocks Transfer of AI Technologies Abroad

Artificial intelligence is equated to a sovereign strategic resource. On June 1, 2026, the State Council of the PRC officially tightened rules controlling outbound investments and deals involving the transfer of technologies, data, and AI algorithms.

The trigger for this political demarche was a recent attempt by the Meta corporation to acquire (or enter into a strategic partnership with) Manus, an Asian startup specializing in AI agents. Beijing strictly blocked this initiative. The new rules mean that transnational capital will no longer be able to freely siphon off Chinese AI innovations. In response to the US embargo on chip supplies, China is building a symmetrical wall, banning the export of advanced algorithms and datasets into the ecosystems of Western Big Tech. The division of the world into isolated technological blocs (splinternet) is entering its final phase.

Source: State Council of China / Reuters / WSJ