China Halts Meta’s $2B Manus Acquisition Deal to Protect AI Talent
In Focus
- China has ordered Meta and Manus to withdraw their acquisition deal
- Decision shows Beijing’s commitment to protect its AI talent and intellectual property
- Meta had acquired Manus in December 2025 in a $2 billion deal
In a surprise move aimed at undoing what it considers a leakage of its technology to the U.S., China has blocked Meta’s acquisition of Manus. The order to cancel the deal was issued by the National Development and Reform Commission (NDRC) on April 27, 2026. The NDRC said the move to prohibit foreign investment in Manus aligns with Chinese laws and regulations.
Parties to Withdraw Acquisition Transaction
The NDRC said it had advised the parties involved to withdraw the acquisition transaction. Meta confirmed the $2 billion deal to acquire Manus in December 2025 in a bid to deepen its push into autonomous AI agents and enterprise-focused workflows.
The acquisition deal had attracted scrutiny from both the U.S. and China. In the U.S., lawmakers have advised American investors against making direct investments in Chinese AI firms. Chinese authorities have also discouraged AI founders in the country from shifting their businesses overseas.
In January 2026, the Chinese government started probing the deal to determine whether it violated the laws on technology export. At the time, the Ministry of Commerce in China said the review would focus on broad regulatory compliance with regard to overseas investment, export controls, and technology import and export.
Earlier this year, a Meta spokesperson had said that its acquisition of Manus had complied with relevant laws. The social media giant expected “an appropriate resolution to the inquiry.”
China’s Decision Alarms Tech Founders
China’s move to block Meta’s deal with Manus has raised concerns among venture capitalists and tech founders in the country. Investors and founders were looking to apply the ‘Singapore-washing’ approach to avoid scrutiny by Beijing and Washington. Founded in China, Manus has moved its headquarters to Singapore. Many Chinese companies have been applying this tactic amid rising U.S.-China AI tensions.
Manus, which develops general-purpose artificial intelligence, introduced its first AI agent in March 2025. The agent is capable of performing complex tasks like coding, market research, and data analysis. Beijing backed Manus as the startup was touted as the next DeepSeek.
In April 2025, the AI startup raised $75 million in a funding round led by American venture capital fund, Benchmark. Eight months after launching the AI agent, Manus announced that it had surpassed $100 million in annual recurring revenue (AAR), making it the fastest-growing startup in the world.
What the Deal Cancellation Means for AI
China’s decision to terminate Meta’s acquisition of Manus shows how AI has become an important part of strategic competition between the world’s leading economies. Controls that were once focused on processors have now extended to AI technologies.
Beijing appears to be keen on protecting its AI talent and intellectual property from being acquired by American companies. China is taking this action even as the U.S. continues to impose export restrictions that limit its access to advanced AI chips in a bid to curb its AI development.
