China blocks Meta's acquisition of AI startup Manus on security grounds

China's top economic planning authority on Monday blocked Meta Platforms' acquisition of AI startup Manus, ordering all parties to withdraw from the deal and citing national security concerns over the transfer of advanced artificial intelligence technology to a U.S. company.

The ruling signals Beijing's resolve to treat artificial intelligence capabilities as core national security assets — and, analysts say, sets a precedent for future foreign acquisitions of Chinese deep-tech companies amid intensifying U.S.-China technology rivalry.

China's National Development and Reform Commission, acting through its Office of the Working Mechanism for Security Review of Foreign Investment, ordered Meta and all other parties to withdraw from the deal, according to The Korea Times.

Meta announced the acquisition in December 2025. Chinese authorities launched an investigation in January 2026 to determine whether the transaction complied with Chinese laws and regulations. The commission announced its blocking decision April 27.

Manus is incorporated in Singapore but traces its origins to Beijing-registered entities. The company develops general-purpose AI agents capable of performing autonomous, multistep complex work — technology Beijing considers strategically sensitive. Most of its employees were based in Singapore at the time of the deal.

Meta said there were "no continuing Chinese ownership interests in Manus" and that it "complied fully with applicable law," adding, "We anticipate an appropriate resolution to the inquiry," according to The Korea Times.

Lian Jye Su, chief analyst at research firm Omdia, said the ruling carries broad implications for the industry. "China is showing the world that it is willing to play hardball when it comes to AI talents and capabilities, which the country views as a core national security asset," Lian said. He added the decision "is strongly indicative of what Chinese authorities may do going forward regarding acquisitions involving Chinese deep-tech companies."

The announcement came less than a month before U.S. President Donald Trump's planned May 2026 visit to Beijing, adding diplomatic weight to an already contentious technology dispute between the two countries.

Manus's own website indicated the deal had already been completed before the commission announced the block — a discrepancy that neither Meta nor Manus has publicly addressed.