China Blocks Meta's $2 Billion Acquisition of Singapore AI Startup Manus

China's National Development and Reform Commission has prohibited Meta Platforms from acquiring Manus, a Singapore-based AI startup that builds agents capable of complex tasks. The deal was reportedly worth about $2 billion and had been moving forward.

The commission said it was blocking the foreign acquisition of Manus and required all parties to withdraw from the transaction. The decision came after a regulatory review that started earlier this year.

China did not name Meta Platforms explicitly but made its intent clear. Officials want to keep advanced AI technology and talent from moving overseas. Regulators treat AI as a strategic asset like critical infrastructure.

The commission also cited rules on cross-border deals. Any transfer of technology, data or investment must follow Chinese law. Manus has Chinese roots despite its Singapore base, giving Beijing grounds to act.

The timing aligns with a planned May meeting between Donald Trump and China's president, Xi Jinping. That adds to tensions in the U.S.-China relationship.

This fits a pattern of competition between the U.S. and China for AI leadership. Both nations are tightening controls. China's step signals it will intervene when sensitive technology or expertise heads abroad.

U.S. tech firms may hesitate on startups with Chinese ties, even if based elsewhere. The U.S. already has export controls and investment limits on cross-border work.

For Meta, the block disrupts plans for AI agents that go beyond chatbots to handle tasks like managing schedules, analyzing data or building software. Manus was set to speed that effort. Losing it may slow development or push Meta to other buys.

Manus did not respond to requests for comment. Its website still lists it as part of Meta, indicating the deal may have closed before regulators intervened. Meta said the transaction followed applicable laws and expects a resolution to the review.