China seeks to block US tech giant Meta from AI acquisition | Technology News
China Blocks Meta’s Acquisition of AI Startup Amid Rising Geopolitical Tensions
By Reuters and The Associated Press
Published April 27, 2026
BEIJING — China has moved to prevent tech giant Meta from acquiring the artificial intelligence (AI) startup Manus, reflecting its growing scrutiny of foreign investments in domestic frontier technology companies. The National Development and Reform Commission (NDRC) announced on Monday that it was prohibiting the foreign takeover of Manus, although it did not explicitly name Meta.
This decision underscores Beijing’s increasing concern regarding U.S. investments in Chinese AI talent and intellectual property, particularly as the United States seeks to limit access to advanced semiconductor technology for Chinese firms.
The specifics behind China’s decision to annul the deal involving a Singapore-based company remain unclear. It is uncertain how the government plans to reverse a completed acquisition, if at all.
Manus, which has origins in China but operates from Singapore, specializes in creating general-purpose AI agents designed for complex tasks with minimal human oversight. The call to block the transaction was made in accordance with existing Chinese laws and regulations, according to the NDRC’s statement.
In response, Meta expressed confidence in the legality of the transaction. “The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry,” the company stated.
A spokesperson for the White House reaffirmed the administration’s commitment to defending the United States’ technology sector against unwarranted foreign influence.
Meta announced its intention to acquire Manus in December. The deal marked a rare instance of a major U.S. tech firm purchasing an AI company with significant ties to China, and it was expected to enhance Meta’s AI capabilities across its platforms.
From the outset, Meta emphasized that there would be no ongoing Chinese ownership interests in Manus, which was to cease its operations in China as part of the agreement. However, in January, Chinese authorities indicated they would investigate whether the acquisition aligned with domestic regulations.
Following a $75 million fundraising round led by the U.S. venture firm Benchmark in May 2025, Manus closed its offices in China and laid off a number of employees, relocating its operations to Singapore. This transition allowed Manus’s parent company, Butterfly Effect, to reincorporate in Singapore, thereby avoiding U.S. investment restrictions on Chinese AI entities as well as Chinese regulations restricting the overseas transfer of intellectual property and capital.
China’s effort to block the Meta deal arrives just weeks before a scheduled summit between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing.
