Beijing: China on Monday blocked Meta’s proposed acquisition of artificial intelligence startup Manus, halting a deal that had drawn attention as a rare takeover of a China-linked AI firm by a major US technology company.
In a brief statement, China’s National Development and Reform Commission (NDRC) said the foreign acquisition had been prohibited following a security review and all parties had been directed to withdraw from the deal.
While the commission did not name Meta directly, the decision pertains to the social media giant’s announced plan to acquire Singapore-based Manus, an AI startup with Chinese roots.
The move was taken by the Office of the Working Mechanism for Security Review of Foreign Investment under Chinese laws and regulations, authorities said, without elaborating on specific reasons for the ban.
Meta had unveiled the deal in December, saying the acquisition would strengthen its artificial intelligence capabilities, particularly through Manus’ “general-purpose” AI agent designed to perform complex multi-step tasks autonomously.
The company had earlier maintained that the transaction would end any continuing Chinese ownership interests in Manus and that the startup would discontinue operations in China.
However, Chinese authorities launched a review in January, signaling concerns over issues linked to foreign investment, technology transfers and data security.
China’s commerce ministry had then said all cross-border acquisitions, technology exports and related investments must comply with domestic laws.
Responding to the decision, Meta said the transaction fully complied with applicable laws and expressed confidence in a resolution.
The development marks a setback for Meta’s AI expansion strategy and highlights growing geopolitical scrutiny surrounding cross-border technology deals, particularly in sensitive sectors such as artificial intelligence.
