BEIJING — China’s top economic planner has blocked U.S. tech giant Meta Platforms Inc.’s planned acquisition of artificial intelligence startup Manus and ordered the parties to unwind the deal, the National Development and Reform Commission said on Monday.
The NDRC, in a brief statement, said it would prohibit foreign investment in Manus in accordance with laws and regulations and required the parties involved to withdraw the acquisition transaction. The decision follows a security review of the deal that Meta announced in December.
Manus is a Singapore-based AI startup with Chinese roots, specializing in agentic AI systems capable of performing complex autonomous tasks. Reports valued the transaction at about $2 billion. Manus was founded by Chinese engineers and had relocated operations to Singapore prior to the announced acquisition.
The NDRC did not provide detailed reasons for the prohibition in its one-line notice. The move reflects heightened Chinese scrutiny of foreign acquisitions involving advanced technology and talent amid ongoing U.S.-China tensions in the AI sector.
Meta has not issued a detailed public response to the decision as of Tuesday. A spokesperson for the company could not immediately be reached for comment. Manus representatives also did not respond to requests for comment.
The deal had drawn attention as a rare instance of a major U.S. technology firm acquiring an AI startup with strong links to China. Some staff from Manus had already begun integrating into Meta’s operations in Singapore before the regulatory intervention, according to reports.
China has increasingly tightened controls on outbound technology transfers and investments in sensitive sectors. Earlier this year, authorities barred some Manus founders from leaving the country as the probe into the acquisition proceeded, sources familiar with the matter told news outlets.
Details on the next steps for unwinding the transaction, including any timelines or financial implications, remain unclear. The NDRC statement did not specify a deadline.
As of Tuesday, neither Meta nor Manus had announced adjustments to their operations following the decision. The broader implications for Meta’s AI development plans were not immediately detailed by the company.
The case underscores ongoing regulatory hurdles for cross-border technology deals between U.S. and Chinese-linked entities. Further statements from the involved parties or additional regulatory actions were not available late Tuesday.
