China Blocks Meta's $2 Billion Acquisition of AI Startup Manus

Apr 28, 2026

China's National Development and Reform Commission blocked Meta Platforms' $2 billion acquisition of AI startup Manus on Monday, forcing the unwinding of a deal announced in December 2024. Manus, a Singapore-registered company with Chinese roots and Beijing-registered predecessor entities, developed general-purpose AI agents capable of autonomous complex work. Meta had stated the acquisition complied with law and that Manus would discontinue Chinese operations with no continuing Chinese ownership, but authorities provided no explanation for the ban. The decision comes less than a month before President Donald Trump's scheduled May 2025 visit to Beijing and reflects China's tightening scrutiny of AI as a national security asset amid intensifying U.S.-China geopolitical rivalry over AI technology.

China's Blocking of Meta's Manus Acquisition

▪The decision to block Meta's acquisition of Manus was made by the Office of the Working Mechanism for Security Review of Foreign Investment.
▪China's National Development and Reform Commission blocked Meta's acquisition of AI startup Manus on Monday.
▪Chinese authorities announced they were investigating the Meta-Manus deal earlier in 2025.
▪China announced in January 2025 that it would investigate whether Meta's acquisition of Manus would be consistent with Chinese laws and regulations.
▪China's National Development and Reform Commission did not elaborate on the reasons for banning Meta's acquisition of Manus.
▪China's National Development and Reform Commission required all parties to withdraw from the Meta-Manus deal.

Manus AI Startup's Chinese Origins and Operations

▪Singapore-based Butterfly Effect Pte was the firm behind Manus ahead of Meta's acquisition.
▪Meta's acquisition of Manus was valued at $2 billion.
▪Meta announced in December 2024 that it was acquiring Manus.

Geopolitical Implications for U.S.-China Tech Competition

▪U.S. President Donald Trump is scheduled to meet Chinese leader Xi Jinping in Beijing in May 2025.
▪Lian Jye Su stated that China views AI talents and capabilities as a core national security asset.
▪Lian Jye Su stated that China's blocking of Meta's Manus acquisition mirrors U.S. export controls, entity lists, and investment curbs on China in the context of rivalry.
▪Lian Jye Su is chief analyst at the technology research and advisory group Omdia.
▪China's blocking of Meta's Manus acquisition came less than a month before U.S. President Donald Trump's planned visit to Beijing in May 2025.