China has blocked Meta from acquiring AI startup Manus, in a move that underscores intensifying tech tensions between Beijing and Washington.
China’s top economic planning body, the National Development and Reform Commission (NDRC), said it would prohibit foreign investment in the deal.
The decision effectively halts Meta’s planned takeover of the Singapore-based firm, which was originally developed by a Chinese company.
Meta had announced the acquisition in December, targeting Manus for its advanced artificial intelligence tools technology designed to handle tasks such as resume analysis and automated financial research.
The deal, reportedly valued at over $2 billion, was seen as a major step in Meta’s push to expand its AI capabilities.
However, the acquisition quickly ran into resistance from Chinese regulators.
Reports indicate that Manus CEO Xiao Hong and chief scientist Ji Yichao were summoned to Beijing earlier this year and restricted from leaving the country while the review was ongoing.
Experts also note that China is increasingly treating AI as a national security asset limiting the outflow of talent, data, and investment to foreign companies.
The decision is likely to ripple across the global tech industry, raising concerns for companies seeking cross-border deals involving Chinese innovation.
It also signals a tougher stance from Beijing on foreign acquisitions, particularly those involving US firms.
Despite Meta’s insistence that the deal complied with international regulations, the outcome highlights the growing complexity of doing business in a world shaped by geopolitical competition.
For many Chinese startups, the move could force a rethink of expansion strategies especially when it comes to partnerships with Western investors.
