China blocks Meta's $2 billion acquisition of AI startup Manus, ordering deal cancellation

China's National Development and Reform Commission (NDRC) blocked the deal on Monday. Meta, a California-based company, had acquired Manus in December for more than $2 billion to boost its AI agent capabilities (tools that can execute complex tasks with minimal human intervention).

In March, Manus CEO Xiao Hong and chief scientist Ji Yichao were barred from leaving China as regulators reviewed the acquisition. Manus had relocated its headquarters from China to Singapore to mitigate U.S.–China tensions.

Beijing's intervention reflects how AI has become central to strategic competition between the two largest economies, with controls now extending beyond semiconductors into AI. The move signals to firms that relocating overseas will not shield them from Chinese government scrutiny.