China blocks Meta’s purchase of AI startup Manus
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The news: China has blocked Meta’s USD2 billion ($2.78 billion) purchase of Singapore-based Manus, an AI startup which was originally established in China.
The context: A brief statement released by the National Development and Reform Commission on Monday said the parties had been told to withdraw from the transaction. The regulator said it would prohibit foreign investment in Manus and in accordance with the law, “have required the relevant parties to cancel the acquisition transaction.”
The Financial Times reported that an unwinding process would be complicated, as Meta has already begun integrating Manus into some of its tools. Bloomberg reports that Manus employees have already moved into the Meta offices in Singapore, and other executives have joined Meta’s AI team. Capital has already been transferred, with exiting investors Tencent, ZhenFund and Hongshan already receiving their proceeds.
China’s Ministry of Commerce announced plans to investigate the acquisition in January this year, to assess whether the deal violates the country’s technology export controls. “The Chinese government has always supported enterprises in conducting mutually beneficial and win-win transnational operations and international technological cooperation in accordance with laws and regulations,” Ministry of Commerce spokesperson He Yadong said at the time.
In March, Chinese authorities stopped two of Manus’ co-founder from leaving the country as it reviewed the Meta deal.
Manus was launched in China in March 2025 and moved its headquarters to Singapore in 2025 after a US-led funding round, before being acquired by Meta. The startup has a general AI agent that automates complex tasks including sales pitch drafting and S&P 500 analysis.
