China Blocks Meta’s $2bn AI Deal, Forces Unwinding Over Security Fears

China has halted Meta’s planned $2 billion acquisition of artificial intelligence start-up Manus, ordering the deal to be scrapped over concerns tied to national security and control of sensitive technologies.
The directive, issued by key regulators including the National Development and Reform Commission (NDRC), bars foreign investment in the company and instructs all parties to terminate the transaction in line with existing laws.
Manus, an AI firm launched in March 2025, was founded in China before relocating its base to Singapore. The company develops autonomous AI agent systems powered by large language models. It describes its platform as an “action engine” designed to extend human capabilities by enabling software-driven task execution.
Its technology allows users to create and deploy personal AI agents capable of handling complex operations independently—from file management to software development—making it an attractive target for Meta as it seeks to expand its AI footprint across its platforms.
The move follows months of regulatory scrutiny by Chinese authorities, who examined the deal for potential breaches of investment and export control regulations. Officials were reportedly concerned about the possible transfer of critical technologies to a foreign company.
As part of the investigation, authorities also imposed restrictions on the movement of two of Manus’ co-founders, signalling the seriousness of the probe.
The decision underscores Beijing’s tightening grip on its AI sector, as it moves to curb foreign access amid intensifying technological rivalry with the United States.
(Source: Financial Times)