China Blocks Meta's $2 Billion Acquisition of AI Start-up Manus

Chinese regulators have blocked Meta's planned $2 billion acquisition of the AI start-up Manus, demanding that the transaction be withdrawn.

The National Development and Reform Commission (NDRC) of China announced the prohibition, citing restrictions on foreign investment in sensitive technology sectors.

The deal, first announced in December 2025, aimed to integrate Manus' autonomous AI agents into Meta's platforms to enhance its artificial intelligence capabilities.

Manus, although now based in Singapore, was founded and previously operated in China, placing it under Chinese regulatory jurisdiction.

The blocking follows months of regulatory scrutiny over concerns about technology transfer and the export of advanced AI technologies.

Reports indicate that Manus' two co-founders were prevented from leaving China during the review process.

Meta has stated that the transaction complied fully with applicable laws and expressed anticipation of an appropriate resolution to the inquiry.

The company has integrated Manus' team into its operations and continues to develop and offer the Manus service to users.

This development occurs amid ongoing tensions between the US and China over technology and trade, reflecting China's tightening control over foreign investment and export of strategic technologies such as AI.

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