China has blocked Meta Platforms from acquiring Manus, a Singapore-based AI startup, in a deal reportedly worth $2 billion. The National Development and Reform Commission prohibited the foreign acquisition, citing security concerns and rules governing cross-border tech transfers.
While Beijing did not name Meta directly, the decision underscores its strategy to keep advanced AI technology and talent from leaving the country. Manus, despite its Singapore base, has Chinese roots, giving regulators jurisdiction. The move comes ahead of a planned meeting between President Donald Trump and China’s President Xi Jinping, adding to already strained relations.
For Meta, this is a significant setback. The company has been aggressively pushing into AI agents-systems that go beyond chatbots to manage schedules, analyze data, and build software. Manus was expected to accelerate that effort. Meta said the transaction complied with applicable laws and expects an appropriate resolution.
The blocked deal reflects a broader trend: both the US and China are tightening control over AI as a strategic asset. For consumers, this means slower rollout of new features, tighter data regulations, and fewer cross-platform tools. The future of AI now depends as much on geopolitics as on technology.