China has blocked Meta's acquisition of artificial intelligence startup Manus, citing concerns over the transfer of advanced technology. The nation's top planning agency, the National Development and Reform Commission, announced the prohibition, requiring all parties to withdraw from the deal. While Meta Platforms, owner of Facebook and Instagram, was not explicitly named, the decision was made in accordance with Chinese laws and regulations.
This move comes as China tightens its scrutiny of the AI industry amidst intensifying geopolitical rivalry with the U.S. over technological dominance. Manus, an AI startup with Chinese roots based in Singapore, had unveiled what it called the "world's first fully autonomous AI." The "general-purpose" AI agent was designed to perform complex tasks autonomously, a capability expected to enhance Meta's AI offerings.
Despite Meta stating there would be no continuing Chinese ownership interests and Manus ceasing operations in China, Beijing launched an investigation in January. The decision to block the acquisition signals China's assertive stance on AI talent and capabilities, viewing them as core national security assets. This could deter future acquisition plans by U.S. tech giants and reflects the broader trend of escalating tech restrictions between the two nations.