Chinese authorities have formally blocked Meta Platforms’ acquisition of the AI startup Manus, ordering all parties to withdraw from the deal, according to statements by China’s National Development and Reform Commission (NDRC) as reported by Reuters and the Associated Press.
What Happened?
On April 27, 2026, the NDRC—through its foreign investment security review office—issued a decision prohibiting the foreign acquisition of Manus and demanded the parties unwind the transaction, according to Reuters and other sources.
Manus, an AI startup incorporated and based in Singapore with connections to China, was acquired by Meta in December 2025 in a deal reported to be valued between $2 billion and $3 billion. Meta integrated Manus’ team and technology into its AI operations. The acquisition had been announced without any immediate regulatory issues at the time.
Context and Regulatory Response
The move follows heightened scrutiny from Chinese regulators, including restrictions imposed earlier this year on Manus’ founders pending a review of whether the deal complied with domestic export regulations—a backdrop underscored by reporting from the Financial Times and Reuters.
Analysts flagged the decision as emblematic of Beijing’s assertive approach toward controlling transfers of strategic technology, particularly in AI, amid intensifying U.S.–China tensions.
Implications for Cross‑Border Tech Deals
This unexpected reversal illustrates China’s willingness to intervene decisively—even after a transaction’s completion—to protect domestic technological capabilities and limit foreign involvement in strategic sectors.
Industry observers suggest that such interventions may deter future overseas acquisitions of Chinese-linked tech firms and prompt multinational companies to reassess strategies around cross-border investment in high-tech industries.
Conclusion
China’s blocking of Meta’s acquisition of Manus highlights increasing regulatory hurdles in global AI investments. The directive to unwind a deal that had already been closed shows regulators’ readiness to act post hoc in the name of national security. For tech firms, this signals that cross-border acquisitions—even those structured via offshore subsidiaries—face growing geopolitical and legal scrutiny.