China is reviewing Meta's acquisition of AI startup Manus, valued at $2.5 billion, as a warning to local entrepreneurs tempted by U.S. buyouts. The Chinese government aims to control its AI technologies amidst a growing tech rivalry with the U.S.

Meta is projected to lose $7 billion in advertising revenue this year due to reduced spending from Chinese retailers like Temu and Shein, as a result of U.S.-China trade tariffs implemented during Trump's presidency. Analysts from MoffettNathanson emphasize that China's contribution to Meta's revenue is significant, and any further economic downturn or trade tensions could exacerbate this loss, potentially leading to a $23 billion decline in ad revenue for 2025. Despite these challenges, they maintain a Buy rating on Meta, albeit with a lowered target price.