China’s National Development and Reform Commission (NDRC) blocked Meta Platforms’ acquisition of AI startup Manus on Monday. The agency issued a statement prohibiting the foreign takeover and requiring all parties to withdraw from the deal. Officials cited concerns regarding the transfer of advanced technology as the primary reason for the unexpected intervention.
Manus is a Singapore-based startup with Chinese roots. The firm develops general-purpose AI agents designed for sophisticated tasks. Meta initially announced the acquisition plan in December. Meta stated on Monday that the transaction fully complied with all applicable laws. The startup’s website had previously indicated the firm was already part of Meta, suggesting the deal had reached final stages.
Analysts view the decision as a significant escalation in the U.S.-China tech rivalry. The move mirrors existing U.S. export controls and investment restrictions on sensitive industries. Beijing now considers AI talent and capabilities to be core national security assets. This precedent is expected to deter future acquisition attempts by U.S. tech giants involving deep-tech firms with ties to China.