China’s National Development and Reform Commission has blocked Meta’s acquisition of AI startup Manus, reversing the deal due to concerns over the transfer of advanced technology. Manus, based in Singapore but with Chinese origins, develops general-purpose AI agents capable of complex tasks such as app coding and market analysis. Although Meta assured that Manus would cease operations in China and that Chinese ownership interests would be terminated, China launched an investigation into the deal earlier this year. This move reflects Beijing’s heightened scrutiny of the AI sector amid deepening US-China technological competition. Analysts warn this could signal tougher controls on foreign acquisitions of Chinese tech assets going forward, aligning with broader geopolitical tensions and export restrictions. Meta maintains the transaction complied with all laws and expects a resolution soon.
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