China is escalating pressure on Meta by strategically wielding dual economic levers: the advertising revenue from Chinese businesses and the supply chain for AI hardware. While Meta's platforms remain blocked in China, the country is still one of the company's top sources of ad income, largely driven by e-commerce firms seeking international customers. At the same time, China exercises significant control over critical components and manufacturing processes for AI infrastructure. By combining these regulatory and industrial tools, Beijing aims to influence Meta's strategic decisions and AI deployment, highlighting the intensifying tech rivalry between the U.S. and China.
Source: Financial Times