China has officially blocked Meta’s planned acquisition of Manus, a Singapore-based artificial intelligence startup with Chinese origins, compelling both parties to unwind the deal, according to the country’s National Development and Reform Commission (NDRC) as reported by the Associated Press.
Regulatory Intervention from Beijing
The NDRC’s Office of the Working Mechanism for Security Review of Foreign Investment issued a terse statement prohibiting the foreign acquisition of Manus and ordering all parties to withdraw from the transaction, without naming Meta explicitly, according to AP reporting.
This regulatory move aligns with an earlier report from TechCrunch, which confirmed that China’s top economic planner demanded the deal’s cancellation under relevant laws and regulations.
Deal Background and Strategic Implications
Meta announced its acquisition of Manus in late 2025 for approximately $2 billion, aiming to integrate Manus’s agentic AI technology into Meta AI, as detailed by TechCrunch. Manus was founded by Chinese engineers in 2022, relocated its headquarters to Singapore in mid-2025, and had begun integrating with Meta operations, including relocation of employees to Meta’s Singapore offices.
In March, reports emerged that Chinese authorities imposed exit bans on Manus's co-founders, CEO Xiao Hong and Chief Scientist Ji Yichao, as part of an investigation into the acquisition, according to TechCrunch and Euronews.
Geopolitical and Industry Context
This action underscores China’s growing sensitivity over cross-border transfers of advanced AI capabilities, particularly amid escalating US-China tech competition. Analysts suggest the move could deter future acquisitions of Chinese-founded AI firms by foreign tech giants, drawing parallels to U.S. export controls and investment restrictions, as noted by both AP and TechCrunch.
Meta’s Position and Uncertain Path Forward
Meta states that the acquisition was fully compliant with applicable laws and expects an appropriate resolution, according to AP and TechCrunch. However, with employees already integrated and operations underway, how Meta will extricate itself from the deal remains unclear.
Conclusion
The NDRC’s abrupt intervention reflects mounting regulatory scrutiny of AI transfers and intensifying geopolitical tensions. As Meta navigates this setback, the case of Manus may become a bellwether for the future of international AI mergers and technology control policies.