China’s National Development and Reform Commission (NDRC) blocked Meta’s proposed acquisition of the AI startup Manus and asked both parties to withdraw from the transaction, according to a statement released on Monday [1, 2, 3]. The deal was valued at around US$2.5 billion by some sources and more than US$2 billion by others [1, 3].

Manus is an AI company registered in Singapore but developed in mainland China, raising concerns for Chinese regulators [2, 3]. The NDRC cited the protection of national economic security and technological sovereignty as reasons for the block, summarized in its statement as “禁止外资收购 Manus 项目” (prohibiting foreign acquisition of the Manus project) [3].

China’s Ministry of Commerce had flagged the transaction for review in January, stating it would assess compliance with export controls, technology export regulations, and external investment rules [2]. The review intensified in March, when local media DW Chinese reported that Manus CEO Xiao Hong and chief scientist Ji Yichao were barred from leaving China as officials examined the deal [3].

While some sources say the NDRC explicitly named Meta in announcing the block [1, 2], others report the agency did not identify Meta by name but the move was publicly understood to target Meta’s acquisition [3].

Analysts see the action as part of China’s broader efforts to control foreign access to emerging technologies amid ongoing tech competition with the United States [1, 3]. The blocked acquisition deprives Meta of a strategic AI asset developed within China’s tech ecosystem.

Meta will now be required to withdraw its purchase offer according to the NDRC’s directive [1, 2, 3]. There is no indication that the Chinese government plans to reopen the deal for further consideration.

The development marks a significant barrier for Meta’s expansion into AI technology originating in China and reflects continuing regulatory caution over cross-border tech investments.

Meta, Manus, and regulatory authorities have not publicly commented beyond the official Chinese statements.