In a significant move impacting global tech deals, China has blocked the acquisition of AI startup Manus by Meta Platforms. The decision was announced on Monday by the National Development and Reform Commission.
In a brief statement, the commission said it was prohibiting a foreign acquisition of Manus and had directed all parties involved to withdraw from the deal. While the statement did not directly name Meta, the company had earlier announced plans to acquire the Singapore-based startup, which has Chinese roots.
The decision was taken by the commission’s Office of the Working Mechanism for Security Review of Foreign Investment, in line with Chinese laws and regulations. Authorities had already indicated earlier this year that the deal was under review. However, no specific reasons were provided for blocking the transaction.
Meta had first revealed the acquisition in December, marking a rare instance of a major US tech company attempting to acquire an AI firm with strong links to China. Manus is known for its “general-purpose” AI agent capable of handling multi-step complex tasks autonomously. The acquisition was expected to strengthen Meta’s AI capabilities across its platforms.
The company had earlier stated that there would be “no continuing Chinese ownership interests in Manus” and that the startup would stop its services and operations in China. Despite this, Chinese authorities had begun reviewing whether the deal aligned with national regulations.
At the time, China’s commerce ministry said companies involved in outward investments, technology exports, data transfers, and cross-border acquisitions must comply with domestic laws. Meta had also noted that most of Manus’ employees are based in Singapore.
Responding to the decision, Meta said the transaction “complied fully with applicable law.” The California-based company added, “We anticipate an appropriate resolution to the inquiry.”
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