The Chinese National Development and Reform Commission (NDRC) has blocked Meta’s $2 billion acquisition of AI startup Manus.

In a statement published before the deal was halted, the regulator said it will “prohibit the foreign investment in the acquisition of the Manus project” and “requires the parties involved to withdraw the acquisition transaction.”

The NDRC has given no specific reason to cancel the acquisition. Presumably, China doesn’t want domestic AI technology to fall into American hands.

It remains to be seen to what extent the acquisition can be reversed. The actual acquisition was finalized a few months ago.

In addition, most of Manus’ employees now work for Meta. Furthermore, Meta has integrated some of Manus’ services into Facebook, Instagram, and WhatsApp.

Lastly, although the founders of Manus are Chinese entrepreneurs, their company is based in Singapore. So it remains to be seen what Beijing can actually do to unwind the corporate deal.

In December 2025, Meta announced the acquisition of Manus, a start-up company that specializes in developing AI agents that can perform more complex tasks for users, such as analyzing large datasets, building apps, or installing and operating software.

In January 2026, the Chinese government announced it would investigate Meta’s acquisition for allegedly violating China’s investment rules. In March, authorities in Beijing barred the two founders of Manus from leaving the country.

“The transaction complied fully with applicable law. We anticipate an ‌appropriate ⁠resolution to the inquiry,” a Meta spokesperson responded to China’s claims at the time.

According to The Guardian, several private firms have reportedly been warned in recent weeks that they should reject US funding unless it receives explicit approval from Beijing.

The orders come just weeks before a summit between US President Donald Trump and Chinese ​President Xi Jinping in Beijing.

---

Unlock more exclusive Cybernews content on YouTube.