China halts Meta's purchase of AI startup Manus

China has blocked Meta Platforms’ attempted acquisition of Chinese artificial intelligence (AI) startup Manus, escalating tensions in the global race for AI dominance between Washington and Beijing.

According to Reuters, China’s National Development and Reform Commission (NDRC) ordered the cancellation of the deal on Monday, preventing the US tech giant from moving forward with its planned purchase. 

The decision highlights Beijing’s growing effort to restrict the transfer of advanced AI talent and intellectual property to foreign companies amid rising geopolitical competition.

Meta, the parent company of Facebook, had reportedly acquired Manus in a deal worth more than $2 billion in December, aiming to strengthen its development of AI agents — systems capable of performing complex tasks with minimal human input. 

However, the acquisition faced scrutiny from Chinese regulators earlier this year, with Manus executives also restricted from leaving the country during the review process.

Manus, once promoted by Chinese state media as a rising competitor to major global AI firms, had gained attention for developing what it described as a general-purpose AI agent. 

The company later relocated its headquarters to Singapore, a move seen by analysts as an attempt to reduce exposure to escalating US–China tech tensions.

The latest intervention underscores how artificial intelligence has become a central battleground in broader strategic competition between the world’s two largest economies. 

Experts say China is increasingly extending its regulatory controls beyond semiconductors into AI systems and companies deemed critical to national security.

Analysts warn the move could further complicate already fragile US–China relations, potentially adding friction ahead of upcoming high-level diplomatic talks between the two countries.