China Blocks Meta’s Acquisition of AI Startup Manus in Major Tech Policy Move
China has blocked Meta’s proposed $2 billion acquisition of Chinese-founded artificial intelligence startup Manus, highlighting growing tensions between Beijing and Washington over control of advanced technologies.
According to a statement from China’s state planner, the deal has been ordered to be unwound following a regulatory review initiated earlier this year. The decision underscores Beijing’s increasing caution over the transfer of key AI capabilities to US firms amid an intensifying global technology competition.
The blocked acquisition is expected to send shockwaves through China’s startup ecosystem, particularly in the artificial intelligence sector. It also comes just weeks before a planned summit between US President Donald Trump and Chinese President Xi Jinping in Beijing, where trade and technology disputes are expected to be key topics.
Manus, founded in China, gained international attention after launching an advanced AI agent system capable of performing autonomous tasks on behalf of users. However, the company later relocated its headquarters and much of its operations to Singapore before announcing its sale to Meta.
Following the announcement, public reaction in China was mixed, with some praising the startup’s technological success while others criticized the decision to sell to a US company. Social media users described the move as “selling out,” reflecting broader national concerns over technology transfer to the United States.
Beijing responded quickly, launching an investigation into the deal in January. Authorities also reportedly restricted the movement of key founders during the probe.
Meta has stated that the transaction complied with applicable laws and expressed hope for a resolution with Chinese regulators. However, the integration of Manus into Meta’s systems and the relocation of its executives to the US firm could complicate efforts to reverse the deal.
Analysts say the decision reflects a broader fragmentation of global technology markets, particularly in sensitive sectors such as artificial intelligence and semiconductors. While the move protects domestic innovation, experts warn it may also discourage Chinese entrepreneurs with global ambitions.
The investigation into Manus remains ongoing, and it is unclear whether further regulatory action will follow.
