China blocks Meta’s $2bn acquisition of AI app, Manu

MaTaZ ArIsInG
Dallas, Texas

China has blocked Meta’s planned $2 billion acquisition of artificial intelligence start-up, Manus, ordering the deal to be unwound over national security and technology control concerns.

The decision was issued by Chinese regulators, including the National Development and Reform Commission (NDRC), which prohibited foreign investment in the company and directed all parties to abandon the transaction in accordance with the law.

Launched in March 2025, Manus is an AI start-up founded in China and later relocated to Singapore. It develops autonomous AI agent systems built on large language models. According to Financial Times, Manus describes itself as an “action engine” that can “extend your human reach”.

Manus allows users to build and run personal AI “agents” that are capable of independently executing complex tasks, managing files and creating software. Meanwhile, Meta had sought to acquire the company to strengthen its artificial intelligence capabilities across its platforms.

According to a report, the move follows months of regulatory scrutiny. That the Chinese authorities earlier reviewed the deal for potential violations of investment and export control rules, amid concerns about the transfer of sensitive technology to foreign entities.

Also, officials also took steps against the company’s leadership during the review process, including restricting the movement of two Manus’ co-founders as part of the investigation.

China’s action reflects a broader policy shift to limit foreign access to its artificial intelligence sector, particularly as competition with the United States over advanced technologies intensifies.

(Financial Times)

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