China's state planner blocks Meta's acquisition of AI startup Manus, ordering deal cancellation

China's National Development and Reform Commission (NDRC) ordered the cancellation of Meta's purchase of Manus on Monday. Meta, based in California, had acquired Manus in December for more than $2 billion to boost its capabilities in AI agents (tools that 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 deal. Manus later moved its headquarters from China to Singapore.

Beijing's intervention reflects AI's role in strategic competition between the two largest economies, with controls extending beyond semiconductors into AI. The move signals that companies relocating overseas will not be shielded from scrutiny.