China blocks Meta’s $2bn Manus deal in sudden clampdown

China has blocked Meta Platforms Inc.’s planned $2 billion acquisition of agentic AI startup Manus, abruptly halting a deal that had already attracted scrutiny over potential technology transfer to the United States.

In a brief statement issued Monday, the National Development and Reform Commission (NDRC) said it had decided to prohibit foreign investment in the company in line with existing laws and regulations. The agency did not provide further details.

The NDRC’s office for ‌reviewing the security of foreign investments said it would “prohibit foreign investment in Manus in accordance with laws and regulations and require the parties involved to withdraw the acquisition transaction.”

The move effectively cancels the high-profile transaction, which had been viewed as a strategic expansion of Meta’s artificial intelligence capabilities, particularly in the emerging field of agentic AI systems.

READ ALSO: Google to invest about $40bn in AI startup, Anthropic 

Regulatory concerns had been mounting in China over the possible outflow of sensitive technology, especially as competition between the US and China intensifies in advanced AI development.

The decision underscores Beijing’s increasingly strict stance on foreign acquisitions involving domestic tech firms, particularly in sectors considered critical to national security and long-term innovation.

Neither Meta nor Manus immediately responded publicly to the development at the time of filing in this report.