China blocks Meta's $2 billion acquisition of AI startup Manus, with the National Development and Reform Commission prohibiting foreign investment after the deal had largely been completed.

China's National Development and Reform Commission issued an order prohibiting foreign investment in Manus, a Singapore-incorporated AI startup that Meta had agreed to acquire for $2 billion. The block came after capital had been transferred, employees relocated, and leadership integrated into Meta's AI operations.

The decision reflects a broader policy shift as Chinese regulators tighten oversight of capital flows and technology transfer in the AI sector. Authorities have signaled that domestic firms should avoid accepting US funding without explicit approval and have applied similar scrutiny to companies including ByteDance.

The block complicates Meta's efforts to strengthen its position in AI agents (autonomous systems that make decisions and complete tasks), an area where it competes with Microsoft, Alphabet, OpenAI, and Anthropic. Meta has stated the transaction complied with applicable laws and expects a resolution to the investigation.