China blocks Meta's $2B Manus deal, forcing unwinding despite deep team integration

China vetoes Meta's $2B Manus deal after months-long probe | TechCrunch

China's top economic planner, the National Development and Reform Commission (NDRC), said on Monday it has blocked Meta's $2 billion acquisition of Manus, an agentic AI startup founded by Chinese engineers that relocated to Singapore before Mark Zuckerberg scooped it up late last year. The move marks one of China's most significant interventions in a cross-border deal, one that extends well beyond U.S.-China tensions and into the broader AI industry. For Meta, it could deal a serious blow to its ambitions in the fast-moving AI agents space. With no explanation offered, China's NDRC ordered both parties to unwind the deal entirely. "The National Development and Reform Commission (NDRC) has made a decision to prohibit foreign investment in the Manus project in accordance with laws and regulations, and has required the parties involved to withdraw the acquisition transaction," it said. But the situation is far from straightforward. Around 100 Manus employees have already moved into Meta's Singapore offices as of March, with founders taking on executive roles. CEO Xiao Hong now reports directly to Meta COO Javier Olivan. Manus CEO Hong and Chief Scientist Yichao Ji are reportedly under exit bans, preventing them from leaving mainland China. "The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry," a spokesperson at Meta told TechCrunch. Founded in 2022 by Hong, Ji and Tao Zhang, Manus relocated its headquarters from China to Singapore around mid-2025. Just months later, Meta came knocking. The company announced its acquisition of Manus in December 2025 for roughly $2 billion to $3 billion, with plans to fold its agent technology directly into Meta AI. Meta has agreed to acquire Singapore-based AI startup Manus, with the deal requiring a full exit from Chinese ownership and operations, per Nikkei Asia. But the company's origins trace back to China. Manus' founders previously established its parent company, Butterfly Effect, in Beijing in 2022 before relocating to Singapore. That background has drawn scrutiny in Washington, where Senator John Cornyn has already raised concerns about Benchmark's investment in the company, questioning whether American capital should be flowing to a Chinese-linked firm, TechCrunch pointed out, citing Cornyn's post on X. Manus did not respond to TechCrunch's request for comment.

China blocks Meta's $2bn purchase of Manus

China has blocked Meta's $2bn acquisition of artificial intelligence platform Manus, after regulators reviewed whether the deal violated Beijing's investment rules. Chinese regulators said in a statement on Monday they had told the parties involved to cancel the acquisition. Manus was founded in China but last year moved its headquarters and core team to Singapore and was subsequently bought by Meta. Since then Chinese regulators have mobilised across multiple agencies to review the transaction, drawing in bodies including the National Development and Reform Commission, the commerce ministry and China's antitrust watchdog, the FT reported this month. Officials had been examining the deal using a range of tools, from export control rules to foreign investment and competition laws, the people said. In March, Beijing restricted two co-founders of Manus from leaving the country as the deal was reviewed. Meta did not immediately respond to a request for comment. This is a developing story

China blocks Meta from acquiring AI startup Manus

HONG KONG (AP) -- China on Monday blocked Meta's acquisition of the artificial intelligence startup Manus, which has Chinese roots but is Singapore-based. In a short statement, China's National Development and Reform Commission, the country's top planning agency, said it was prohibiting a foreign acquisition of Manus and had required all the parties to withdraw from the deal. It did not specifically name Meta, which owns Facebook and Instagram. The decision was made by the commission's Office of the Working Mechanism for Security Review of Foreign Investment in accordance with Chinese laws and regulations, the statement said. It came after Chinese authorities said they were looking into the deal earlier this year. The commission did not elaborate on the reasons for the ban. Meta first announced that it was acquiring Manus in December in a rare case of a major U.S. tech group buying an AI company with strong links to China. Its deal with Manus, whose "general-purpose" AI agent can perform multi-step complex work autonomously, was expected to help expand AI offerings across Meta's platforms. Meta had said there would be "no continuing Chinese ownership interests in Manus" and that Manus would discontinue its services and operations in China. But China said in January that it would investigate whether the acquisition would be consistent with its laws and regulations. China's commerce ministry said at the time that any enterprises engaging in outward investment, technology exports, data transfers and cross-border acquisitions must comply with Chinese law. Meta had said most of Manus' employees were based in Singapore. Meta said on Monday in a response that the transaction "complied fully with applicable law." "We anticipate an appropriate resolution to the inquiry," the California-based company said in a statement.

China blocks Meta's acquisition of AI startup Manus

China said Monday it has decided to block Meta's $2 billion acquisition of Manus, a Singaporean AI startup with Chinese roots. China's state planner, the National Development and Reform Commission, said it made the decision to prohibit foreign investment in Manus in accordance with laws and regulations, and has asked the parties involved to withdraw the acquisition transaction. The deal had attracted scrutiny from both China and Washington, as lawmakers in the U.S. have prohibited American investors from backing Chinese AI companies directly. Meanwhile, Beijing has increased efforts to discourage Chinese AI founders from moving business offshore. -- CNBC's Anniek Bao contributed to this story.

China Will Require Meta to Unwind Acquisition of AI Start-Up Manus

The Chinese government said on Monday that it would require Meta's acquisition of Manus, a Singapore-based artificial intelligence company with Chinese founders, to be unwound, in a move that could chill other Chinese entrepreneurs from seeking tie-ups with foreign partners. Chinese officials had said in January they were investigating whether Meta's acquisition of Manus last December violated the country's rules on foreign investment. They were also assessing whether the deal violated China's requirements that companies obtain approval for the export of certain technologies. The National Development and Reform Commission, a high-level ministry that oversees economic planning and plays a central role in setting China's A.I. policy, said on Monday that it had decided to prohibit foreign investment in Manus, and instructed the parties involved to withdraw the acquisition. It is not clear how such a transaction would be unwound. Meta has described the two teams as "deeply integrated." Members of the Manus team have been working alongside colleagues from Meta at the company's office in Singapore, according to two people familiar with the operation who were not authorized to talk publicly. The Chinese government issued its decision just a few weeks before a planned meeting between President Trump and China's leader, Xi Jinping. The New York Times reported last month that officials from the Chinese agency had called in Meta and Manus executives to express concerns about the deal, and that Manus executives had been restricted from departing China, as part of an apparent effort to discourage Chinese A.I. executives from moving businesses offshore. As companies in China and the United States race to develop cutting-edge A.I., the scrutiny could make it harder for other Chinese firms to attract funding from foreign investors. It could also signal to other Chinese researchers not to follow the path Manus took, in which Chinese executives register companies outside China to sidestep regulations from both Washington and Beijing. Manus is based in Singapore but was founded by Chinese engineers and had a Chinese parent company. The company was incorporated offshore and set up in China as a foreign-owned entity; it has affiliated offices in Beijing and Wuhan. Meta did not immediately respond to a request for comment. The company previously said that the transaction had fully complied with applicable law. This is a developing story. Check back for updates. Xinyun Wu contributed research from Taipei.

China blocks Meta's $2bn acquisition of AI start-up Manus

Facebook-owner Meta's acquisition of AI start-up Manus has been blocked by Chinese regulators. Announced in late December, Meta said the deal - estimated to be worth around $2bn (£1.48bn) at the time - would see Manus' agents used to boost to its own AI across its platforms. But reports on Monday said Beijing's National Development and Reform Commission had prohibited foreign investment in the deal, requiring "the parties involved to withdraw the acquisition transaction". A Meta spokesperson told the BBC "the transaction complied fully with applicable law". "We anticipate an appropriate resolution to the inquiry," they added. It comes after months of scrutiny over Meta's acquisition of Manus by Chinese regulators. Manus has sought to set itself apart from rival AI developers with what it claims can be a "truly autonomous" agent. Unlike many chatbots which need to be repeatedly asked for things before a user can get their desired response, the company says its service can plan, execute and complete tasks independently in accordance with instructions. Analysts described the deal at the time as a "natural fit" for Meta, with founder and chief executive Mark Zuckerberg spurring the firm's AI development. It recently told staff it would cut thousands of jobs amid increased AI spend. While Manus is now based in Singapore, it was founded and previously based in China and, as such, has come under the country's regulators. China has a number of strict laws and regulations around its tech, including controls on their export or sale to foreign firms. Such regulations, for instance, meant Beijing's approval was needed to secure President Donald Trump's deal to keep TikTok available in the US after its sale by Chinese parent company ByteDance. It was reported in March that Manus' two co-founders had been prevented from leaving the country amid a review of Meta's acquisition. "The outstanding team at Manus is now deeply integrated into Meta, running, improving and growing the Manus service and will continue to make it available to the millions of people who enjoy it," a Meta spokesperson told the BBC at the time. Any requirement to unwind the acquisition may, as a result, cause difficulty for Meta. It also comes amid tensions between the US and China, which have loomed large over the tech industry. The White House said on Friday it would work more closely with US AI firms to combat "industrial-scale campaigns" to steal advances in the technology - saying new information showed "foreign entities, principally based in China" were copying US models. A representative of China's US embassy in Washington DC took issue with "the unjustified suppression of Chinese companies by the US" in response to the memo. "China is not only the world's factory but is also becoming the world's innovation lab," the representative added. Sign up for our Tech Decoded newsletter to follow the world's top tech stories and trends. Outside the UK? Sign up here.

China orders Meta to unwind its $2 billion acquisition of Manus

The NDRC's Office of the Working Mechanism for Foreign Investment Security Review issued a formal cancellation order on Monday, four months after the deal was announced. Manus co-founders Xiao Hong and Ji Yichao have been barred from leaving China since March. China's National Development and Reform Commission has formally ordered Meta to unwind its $2 billion acquisition of Manus, the agentic AI startup, in a brief statement issued by the Office of the Working Mechanism for Foreign Investment Security Review on Monday. The NDRC's instruction represents the end of a four-month regulatory process that began almost immediately after the deal was announced in December 2025, escalated to exit bans on Manus's co-founders in March 2026, and has now concluded with China's most direct intervention in a US technology acquisition of a Chinese-founded company since the beginning of the current trade war cycle. Manus was founded by Xiao Hong (CEO) and Ji Yichao (Chief Scientist) in China and incorporated in Singapore, a common structure for Chinese AI startups seeking international investment while maintaining operational roots in China. The company emerged in early 2025 as one of the most technically impressive agentic AI platforms, capable of autonomously executing complex multi-step tasks across web browsers, code editors, and file systems without requiring human supervision at each step. It raised $75 million from Benchmark, the prominent US venture capital firm, in April 2025, and was acquired by Meta in a deal the Wall Street Journal reported as valued at over $2 billion. Meta announced there would be no continuing Chinese ownership interest post-close and that Manus would discontinue services and operations in China. The Chinese government's concern was not about the $2 billion price or Meta's market position in China, Meta's consumer apps are already blocked in the country. The concern was about what category of asset was being transferred. China's Ministry of Commerce launched a formal probe in January 2026, framing its review around export control laws and what constitutes a technology export when the asset being transferred is not a conventional product but a team, a system, and operational know-how embedded in a Chinese-founded and Chinese-trained organisation. That framing, "is an AI team an export?", is the regulatory question the Manus case has forced into the open, and it has no settled answer in any jurisdiction. Chinese authorities had barred Xiao Hong and Ji Yichao from leaving the country after summoning them to Beijing for questioning by the NDRC on potential violations of foreign direct investment rules. The pair, based in Singapore, were told they could not leave China after attending those meetings. The Washington Post reported last week that the Manus case had revealed what Chinese tech workers described as "a new red line": the point at which a Chinese-founded, Singapore-incorporated AI company becomes subject to Chinese state oversight over its ability to exit to a US acquirer. That red line, now formalised by Monday's cancellation order, has direct implications for any Chinese-founded AI startup incorporated outside China that is considering a similar international exit. The Manus case is also the direct origin of the broader Chinese policy, which is to require government approval before Chinese tech companies accept US capital, and the multi-agency probe, led by the NDRC and including the Ministry of Commerce, that was triggered by the Meta-Manus deal. That policy, reported as unverified by Reuters when it was announced on Thursday, has now received its first concrete enforcement action in the form of Monday's cancellation order. The Meta-Manus case is no longer just a data point in the US-China AI competition; it is the foundational event that has prompted China to formalise a new regulatory framework for technology outflows at the intersection of AI, foreign investment, and national security. For Meta, the practical consequences are significant but bounded. The company paid $2 billion for a team and technology it will now, at least formally, not be able to integrate, or will be required to unwind to Chinese regulatory satisfaction. Whether Meta can recover any portion of its acquisition consideration, retain any of the Manus team outside China, or argue that the Singapore incorporation insulates the deal from NDRC jurisdiction are all questions that will be resolved through legal proceedings rather than press releases. The broader consequence is strategic: any US technology company considering acquiring a Chinese-founded AI startup must now treat NDRC foreign investment security review as a genuine deal risk, regardless of where that company is incorporated.

China blocks Meta from acquiring AI startup Manus

HONG KONG -- China on Monday blocked U.S. tech giant Meta's acquisition of the artificial intelligence startup Manus, in an unexpected move to reverse a deal that apparently aroused Beijing's concerns about the transfer of advanced technology. In a one-line statement, China's National Development and Reform Commission, the country's top planning agency, said it was prohibiting a foreign acquisition of Manus and had required all the parties to withdraw from the deal. It did not specifically name Meta Platforms, which owns Facebook and Instagram. The decision was made by the commission's Office of the Working Mechanism for Security Review of Foreign Investment in accordance with Chinese laws and regulations, the statement said. It came after Chinese authorities said they were looking into the deal earlier this year. The commission did not elaborate on the reasons for the ban. The announcement came less than a month before U.S. President Donald Trump's planned visit to Beijing to meet Chinese leader Xi Jinping in May, in a sign that China's communist leaders are tightening scrutiny of the AI industry amid intensifying geopolitical rivalry with the U.S. over the technology. Meta announced in December that it was acquiring Manus, which has Chinese roots but is based in Singapore, in a rare case of a major U.S. tech group buying an AI company with strong links to China. Its deal with Manus, whose "general-purpose" AI agent can perform multistep complex work autonomously, was expected to help expand AI offerings across Meta's platforms. Meta had said there would be "no continuing Chinese ownership interests in Manus" and that Manus would discontinue its services and operations in China. But China said in January that it would investigate whether the acquisition would be consistent with its laws and regulations. China's commerce ministry said at the time that any enterprises engaging in outward investment, technology exports, data transfers and cross-border acquisitions must comply with Chinese law. Meta had said most of Manus' employees were based in Singapore. Manus did not respond to a request for comment. Its website says the company "is now part of Meta," indicating that the deal had already been completed. Meta said on Monday that the Manus transaction "complied fully with applicable law." "We anticipate an appropriate resolution to the inquiry," the California-based company said in a statement. Singapore-based Butterfly Effect Pte was the firm behind Manus ahead of the acquisition. But the AI startup traces its roots back to Beijing-registered entities which were established several years ago. "China is showing the world that it is willing to play hardball when it comes to AI talents and capabilities, which the country views as a core national security asset," said Lian Jye Su, chief analyst at the technology research and advisory group Omdia. "It is strongly indicative of what Chinese authorities may do going forward regarding acquisitions involving Chinese deep-tech companies." Beijing's acquisition ban could deter similar acquisition plans by U.S. tech giants going forward, he said. "In the context of rivalry, it mirrors U.S. export controls, entity lists, and investment curbs on China," said Su.

China blocks $2bn Meta takeover of AI agent developer Manus

Beijing says domestic tech companies must seek explicit government approval for accepting US investment China has blocked Meta's $2bn (£1.5bn) acquisition of an AI startup as it cracks down on US investments in domestic tech companies. Mark Zuckerberg's Meta, the owner of Facebook, Instagram and WhatsApp, announced the acquisition of Manus, a developer of autonomous AI agents, in December. However, the Chinese National Development and Reform Commission (NDRC) said on Monday it had cancelled the takeover. In a statement, China's top economic planning body said that it will "prohibit the foreign investment in the acquisition of the Manus project" and "requires the parties involved to withdraw the acquisition transaction". Bloomberg reported last week that Chinese regulators are planning to block tech firms, including leading AI startups, from accepting US investment without government approval. Several private firms have reportedly been warned in recent weeks that they should reject US funding unless it receives explicit approval from Beijing, in a policy move triggered by the Manus deal. Manus, which launched in Beijing but is now based in Singapore, described the deal as "validation of our pioneering work with general AI agents". AI agents are designed to carry out multiple tasks - such as planning holidays, handling customer queries or drafting research presentations - without human intervention and are important products for tech executives touting the labour-saving possibilities of the technology. Meta, which is pouring billions of dollars into its AI drive, said the deal would bring a "leading agent to billions of people and unlock opportunities for businesses across our products". China and the US are the leading AI superpowers, with all of the top 20 best-performing models produced by a developer from one of those countries. The US president, Donald Trump, claimed in January that "we're leading China by a tremendous amount" in what the White House has billed as a straight race between Beijing and Washington for AI dominance.

China blocks Meta's acquisition of AI firm Manus

Beijing (AFP) - China has blocked Meta's acquisition of AI startup Manus, the top economic planning body said Monday, after a regulatory review that reportedly also saw Beijing restrict two co-founders from leaving the country. Facebook owner Meta had agreed to acquire Manus, an artificial intelligence agent created by a company founded in China but now based in Singapore, the two firms said in December. Analysts however had warned then the deal could fall foul of regulators at a time of fierce technological rivalry between Washington and Beijing. The Financial Times reported last month that China had restricted two Manus co-founders from leaving the country, citing three people with knowledge of the matter. Chief executive Xiao Hong and chief scientist Ji Yichao, who are usually based in Singapore, were reportedly summoned to a meeting in Beijing in March and told they were not allowed to leave China because of a regulatory review of the Meta acquisition. Beijing's National Development and Reform Commission said in a statement on Monday that it will "prohibit the foreign investment in the acquisition of the Manus project" and "requires the parties involved to withdraw the acquisition transaction", without naming Meta. It added that this was done "in accordance with laws and regulations". AFP has contacted Manus and Meta for comment. Meta said in December that the deal -- the financial details of which were not disclosed -- would "bring a leading agent to billions of people and unlock opportunities for businesses across our products". Bloomberg Intelligence analysts said the purchase was likely aimed at expanding Meta's AI agent task capabilities, and that it could be worth more than $2 billion. Manus, created by startup Butterfly Effect, can sift through and summarise resumes or create a stock analysis website, according to its website.

China blocks Meta's $2bn Manus acquisition

'The transaction complied fully with applicable law,' Meta said in a statement. China has blocked Meta's $2bn acquisition of AI start-up Manus. In a brief statement, the country's National Development and Reform Commission (NDRC) said that the decision to prohibit foreign investment in Manus was made in accordance with Chinese laws. It has asked the parties to withdraw from the acquisition. In a statement to SiliconRepublic.com, a spokesperson for Meta said: "The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry." Meta did not confirm whether it would push back against the decision. China's decision hinders Meta's massive AI plans to play catch up with its Big Tech competitors. The company has spent billions to acquire businesses, hire expensive executives and realign its priorities. Last week, the Facebook-owner decided to cut 8,000 jobs in a bid to run "more efficiently" and "offset the other investments" it's making. The company, which has budgeted $135bn in spending this year, committed to purchasing Manus late last year, followed by the viral Moltbook platform in March for an undisclosed amount. Manus employees and executives have joined Meta, while investors including Tencent Holdings, ZhenFund and Hongshan have already received their proceeds from the acquisition, sources have told Bloomberg. A person familiar with the matter told the Financial Times that the NDRC's decision was "harsh", and that it carries a "strong intention to stop follow-on deals" similar to Manus. "In reality, it's hard to unwind a done deal, so it is more about verbal warnings on similar deals and the leveraging building before the Xi-Trump summit," the source added. US president Donald Trump is set to meet with his Chinese counterpart Xi Jinping next month. Manus is headquartered in Singapore, but has a Chinese parent company called Butterfly Effect Technology. Meta acquired the company after a $75m funding round last April that valued it at $500m. As per the now contested acquisition deal, Meta can operate and sell the Manus service, as well as integrate it into its own products. However, Manus would still be able to sell its subscriptions through its own app and website. In February, the start-up launched 'Manus Agents', personal AI agents that perform similarly to the Austrian-made open source OpenClaw. The Agents, which debuted on Telegram that month, had expanded to WhatsApp shortly after. Meta did not confirm if the China's decision would affect Manus Agents on WhatsApp. The Chinese Ministry of Commerce launched an investigation shortly following the acquisition to determine whether Meta violated the country's laws on technology exports and outbound investment. According to the rules, the Chinese government needs to approve the export of certain technologies, including AI. While Bloomberg recently reported that Chinese agencies told the country's key AI firms that they should reject capital with US origins unless explicitly approved. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Beijing blocks Meta acquisition of Chinese AI startup Manus - The Economic Times

China's top economic planner has blocked Meta's acquisition of AI startup Manus, citing a prohibition on foreign investment in the project. The National Development and Reform Commission has ordered the parties involved to withdraw the transaction, following earlier reports of travel restrictions on two cofounders.China's state planner blocked U.S. tech giant Meta's purchase of Chinese artificial intelligence startup Manus on Monday, ordering the cancellation of the deal as Beijing and Washington jostle over supremacy in frontier industries. The decision by China's National Development and Reform Commission (NDRC) highlights Beijing's commitment to stop AI talent and intellectual property from being acquired ⁠by U.S. ⁠entities, as Washington tries to hamper its AI development with export controls designed to cut off access to U.S. chips. It could also add another thorny issue to the agenda of a planned mid-May Beijing summit between U.S. President Donald Trump and his Chinese counterpart Xi Jinping. California-based Meta, which owns Facebook, acquired Manus in December for more than $2 billion in a ⁠bid to boost its capabilities in AI agents, tools that can execute more complex tasks than chatbots with minimal human intervention. But in ⁠March, Manus CEO Xiao Hong and chief scientist Ji Yichao were barred from leaving China as regulators reviewed the deal, sources familiar with the matter said. Manus was hailed early last year by state media and commentators as China's next DeepSeek after releasing what it said was the world's first general AI agent. Months later Manus moved its headquarters from China to Singapore, joining a wave of other Chinese companies that have done so to curb risks from the U.S.-China tensions. Alfredo Montufar-Helu, a managing director at Ankura China Advisors, said Beijing's intervention ⁠reflects how AI has become central to strategic competition between the world's two largest economies, with controls that were once focused on semiconductors now extending into AI. "China is saying we will prevent foreign acquisition of assets we consider important for national security -- and AI is now clearly one of them," he said, adding that the move also signals to firms that relocating overseas will not shield them from scrutiny.

Meta's Purchase of AI Startup Manus Halted by China | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. China's National Development and Reform Commission announced Monday (April 27) that it would "prohibit foreign investment in the Manus project," and required the companies to "withdraw the acquisition transaction." PYMNTS has contacted meta for comment but has not yet gotten a reply. The commission's decision comes months after a report from CNBC that Chinese regulators were investigating the deal, with a focus on whether the acquisition is in keeping with the country's export control laws. Meta announced plans to acquire Singapore-based Manus late last year as part of a larger effort to bolster its AI offerings. "Manus is already serving the daily needs of millions of users and businesses worldwide," Meta said in its announcement. "It launched its first general AI agent earlier this year and has already served more than 147 trillion tokens and created more than 80 million virtual computers. We plan to scale this service to many more businesses." The deal marked one of the most high-profile examples of an American tech giant buying an AI startup with roots in Asia's AI and startup spaces. Manus gained the support of the Chinese government in March of 2025 after it introduced an AI agent that could produce detailed research reports and create custom websites, working with AI models from companies like Anthropic and China's Alibaba. Acquiring Manus would give Meta a "scaled, revenue-generating AI product with direct consumer payments," PYMNTS wrote in a separate Dec. 30 report. Although the tech giant has invested in AI infrastructure and promoted open-source models with its Llama family of models, monetization has been indirect, linked largely to advertising and engagement across social media platforms like Facebook and Instagram. "By acquiring Manus, Meta gains technology and distribution, along with immediate exposure to subscription revenue and insight into consumer willingness to pay for AI-powered assistance," the report added. "The transaction also shortens the timeline for rolling out premium AI offerings without having to build a paid user base from scratch." In related news, PYMNTS wrote earlier this month about the way Meta's status as a social media platform gives it an edge over other players in the AI space, thanks to years of accumulated public user data. "No other AI company holds that position," that report said. "OpenAI knows what users have asked previously. Google knows what they search. Meta knows what they buy, who they follow and what they scroll past."

China blocks Meta from acquiring AI startup Manus - The Korea Times

HONG KONG -- China on Monday blocked U.S. tech giant Meta's acquisition of the artificial intelligence (AI) startup Manus, in an unexpected move to reverse a deal that apparently aroused Beijing's concerns about the transfer of advanced technology. In a one-line statement, China's National Development and Reform Commission, the country's top planning agency, said it was prohibiting a foreign acquisition of Manus and had required all the parties to withdraw from the deal. It did not specifically name Meta Platforms, which owns Facebook and Instagram. The decision was made by the commission's Office of the Working Mechanism for Security Review of Foreign Investment in accordance with Chinese laws and regulations, the statement said. It came after Chinese authorities said they were looking into the deal earlier this year. The commission did not elaborate on the reasons for the ban. The announcement came less than a month before U.S. President Donald Trump's planned visit to Beijing to meet Chinese leader Xi Jinping in May, in a sign that China's communist leaders are tightening scrutiny of the AI industry amid intensifying geopolitical rivalry with the U.S. over the technology. Meta announced in December that it was acquiring Manus, which has Chinese roots but is based in Singapore, in a rare case of a major U.S. tech group buying an AI company with strong links to China. Its deal with Manus, whose "general-purpose" AI agent can perform multistep complex work autonomously, was expected to help expand AI offerings across Meta's platforms. Meta had said there would be "no continuing Chinese ownership interests in Manus" and that Manus would discontinue its services and operations in China. But China said in January that it would investigate whether the acquisition would be consistent with its laws and regulations. China's commerce ministry said at the time that any enterprises engaging in outward investment, technology exports, data transfers and cross-border acquisitions must comply with Chinese law. Meta had said most of Manus' employees were based in Singapore. Manus did not respond to a request for comment. Its website says the company "is now part of Meta," indicating that the deal had already been completed. Meta said on Monday that the Manus transaction "complied fully with applicable law." "We anticipate an appropriate resolution to the inquiry," the California-based company said in a statement. Singapore-based Butterfly Effect Pte was the firm behind Manus ahead of the acquisition. But the AI startup traces its roots back to Beijing-registered entities which were established several years ago. "China is showing the world that it is willing to play hardball when it comes to AI talents and capabilities, which the country views as a core national security asset," said Lian Jye Su, chief analyst at the technology research and advisory group Omdia. "It is strongly indicative of what Chinese authorities may do going forward regarding acquisitions involving Chinese deep-tech companies." Beijing's acquisition ban could deter similar acquisition plans by U.S. tech giants going forward, he said. "In the context of rivalry, it mirrors U.S. export controls, entity lists, and investment curbs on China," said Su.

China blocks Meta from acquiring AI startup Manus

HONG KONG -- China on Monday blocked Meta's acquisition of the artificial intelligence startup Manus, which has Chinese roots but is Singapore-based. In a short statement, China's National Development and Reform Commission, the country's top planning agency, said it was prohibiting a foreign acquisition of Manus and had required all the parties to withdraw from the deal. It did not specifically name Meta, which owns Facebook and Instagram. The decision was made by the commission's Office of the Working Mechanism for Security Review of Foreign Investment in accordance with Chinese laws and regulations, the statement said. It came after Chinese authorities said they were looking into the deal earlier this year. The commission did not elaborate on the reasons for the ban. Meta first announced that it was acquiring Manus in December in a rare case of a major U.S. tech group buying an AI company with strong links to China. Its deal with Manus, whose "general-purpose" AI agent can perform multi-step complex work autonomously, was expected to help expand AI offerings across Meta's platforms. Meta had said there would be "no continuing Chinese ownership interests in Manus" and that Manus would discontinue its services and operations in China. But China said in January that it would investigate whether the acquisition would be consistent with its laws and regulations. China's commerce ministry said at the time that any enterprises engaging in outward investment, technology exports, data transfers and cross-border acquisitions must comply with Chinese law. Meta had said most of Manus' employees were based in Singapore. Meta said on Monday in a response that the transaction "complied fully with applicable law." "We anticipate an appropriate resolution to the inquiry," the California-based company said in a statement.

Startup News: China Blocks Meta's $2B Acquisition of AI Startup Manus

China has blocked Meta's $2 billion acquisition of AI startup Manus. The latest development highlights the growing regulatory scrutiny and geopolitical tensions shaping the future of global technology deals and AI expansion strategies. Several Media reports have already claimed that China plans to restrict top technology firms, including leading AI startups, from accepting US capital without government approval. China's state planner has prohibited the foreign acquisition of the Chinese artificial intelligence startup Manus and ordered the parties involved to cancel the transaction, the National Development and Reform Commission said on Monday. Moonshot AI and StepFun were among the companies that received the guidance, the report said. Regulators have also imposed similar restrictions on TikTok owner ByteDance and do not want the company to approve secondary share sales to US investors without government approval, it added. According to a Bloomberg report, Chinese regulators, including the National Development and Reform Commission, have recently instructed several private technology firms to reject US investment in funding rounds unless explicitly approved. The latest restriction follows 2025 bid to acquire the AI startup Manus, valued at more than $2 billion. After the bidding news grabbed headlines, it immediately triggered investigations into foreign investments in Chinese companies and technology exports. Chinese authorities were concerned that the deals could spur other startups to move advanced technology offshore. Meta had earlier stated that the deal would bring a "leading agent to billions of people and unlock opportunities for businesses across our products".

Chinese Regulators Block Meta's Over $2 Billion Deal for AI Startup Manus

Chinese regulators have blocked Facebook parent Meta's over $2 billion acquisition for AI startup Manus, underlining heightened scrutiny of high-tech companies getting U.S. investment. The National Development and Reform Commission said Monday that it has decided to prohibit the acquisition of Manus by a foreign entity and asked the parties involved to terminate the transaction. That came after China's commerce ministry said in January that authorities would conduct an investigation into the deal. Meta agreed to buy Manus, a Singapore-based company with Chinese founders, for more than $2 billion late last year. Last month, China had told two co-founders of the startup not to leave the country while authorities review the sale to Meta, The Wall Street Journal reported, citing people familiar with the matter. Founded by Chinese entrepreneurs, the company has made strategic decisions to distance itself from its Chinese roots. Last year, Manus turned down some local governments in China that wanted to invest in the company, the Journal reported previously. It moved its base to Singapore in mid-2025. Meta didn't immediately respond to a request for comment.

China doesn't want Meta's Mark Zuckerberg to buy Manus AI, here is why

The decision shows tighter rules on tech deals and rising global competition in AI. China has stepped in to stop a major artificial intelligence deal. The country ordered Meta Platforms to unwind its 2.5 billion dollar purchase of the startup Manus. The decision was announced by the National Development and Reform Commission. Officials said it is based on national security concerns linked to cross-border technology transfers. Many industry watchers believe it also reflects rising tension between China and the United States over control of advanced AI tools. The current move from the Chinese governments clearly states that they are becoming more careful about foreign investment in important technology sectors, and political decisions can affect business deals in the global tech industry. These actions might slow things down, but they can also help protect a country's national interests. The Chinese regulator said the deal must be reversed after a review found risks linked to foreign control of sensitive technology. Under Chinese law, investments that affect national security can be blocked or cancelled. Officials argued that Manus still has strong roots in China through its original entity, Beijing Butterfly Effect Technology. Also read: Using Windows or Microsoft Office? India issues high-severity cyber alert, how to stay safe Manus created an AI agent that can do complex work like writing detailed reports and making presentation slides. The company started in China in 2022 but later moved much of its work to other countries. A Singapore-based entity took over global operations, and many employees were relocated there after foreign investment. Meta completed the acquisition in late December, and soon after that the Chinese authorities opened an investigation. Reports said Manus co-founders Xiao Hong and Ji Yichao were asked to remain in China during the review process. Also read: Samsung Galaxy S25 Ultra price cut alert! Save up to Rs 30,000 on Amazon Meta said the deal followed all legal requirements and expressed hope for a fair outcome. The company also stated that Manus would end its China operations and remove any local ownership links. However, the original Chinese entity has not yet been fully shut down. Regulators appear concerned that similar moves could allow Chinese technology to leave the country without proper oversight. The case shows that Beijing is trying to stay in control of how AI develops, especially as competition around the world is getting stronger.