China Blocks Meta’s $2 Billion Acquisition of AI Firm Manus

China has decided to block Meta Platforms Inc.’s $2 billion acquisition of agentic AI startup Manus, in a surprise move to unwind a controversial deal that has drawn criticism over potential technology leakage to the US, Bloomberg News reported.

China’s regulators move to block foreign investment in AI startup Manus amid rising tech tensions. (Photo: Manus X)

The National Development and Reform Commission (NDRC) ordered the deal’s cancellation in a brief statement.

The state planner said it would prohibit foreign investment in the startup in accordance with laws and regulations, without elaborating.

The ruling is likely to send a chill through China’s rapidly growing AI sector and comes weeks before a high-profile summit between US President Donald Trump and Chinese President Xi Jinping.

Beijing has tightened scrutiny of key industry firms following the deal, which had largely been completed.

The transaction was initially seen as a model for startups with global ambitions, but domestic critics later raised concerns about the transfer of valuable technology to a geopolitical rival.

Manus’s founders began in China but relocated their headquarters and key staff to Singapore in 2025. It remains unclear whether Beijing can assert authority over a transaction conducted largely outside its borders.