China Blocks Meta’s $2 Billion Manus Acquisition Citing Security Concerns
China’s NDRC ordered cancellation of Meta’s over $2 billion acquisition of AI startup Manus, blocking the December deal. Beijing cited national security after barring Manus’ CEO and chief scientist from leaving in March and warned that relocating to Singapore won’t avert scrutiny.
1. Blocked Acquisition
China’s National Development and Reform Commission ordered the cancellation of Meta’s December acquisition of Manus, an AI startup acquired for over $2 billion. The move halts Meta’s planned integration of Manus’ advanced AI agents designed for complex task execution.
2. Regulatory Rationale
Beijing justified the decision on national security grounds, aiming to retain critical AI talent and intellectual property. Manus’ CEO Xiao Hong and chief scientist Ji Yichao were barred from exiting China in March as part of the review process.
3. Implications for Meta
The ruling highlights escalating regulatory risks for U.S. tech firms operating in China and may delay Meta’s broader AI roadmap. It signals that relocating Chinese-based assets overseas, such as to Singapore, may not shield them from Chinese scrutiny.