China has officially blocked Meta’s proposed acquisition of artificial intelligence startup Manus, escalating tensions over foreign investment in the country’s fast-growing tech sector.
The decision was confirmed on Monday by China’s National Development and Reform Commission (NDRC), the country’s top economic planning authority.
In its statement, the agency said it would “prohibit foreign investment in the acquisition of the Manus project” and ordered all parties involved to withdraw from the transaction.
The move effectively halts Meta’s attempt to expand its artificial intelligence portfolio through the acquisition, which had been closely watched by global tech investors amid rising competition in advanced AI development.
The ruling follows earlier reports that Chinese authorities had already placed restrictions on two co-founders of Manus, including travel limitations that prevented them from leaving the country.
Those developments had fueled speculation that regulatory approval for the deal was increasingly unlikely.
While Beijing did not provide detailed reasoning for the decision, the block aligns with its broader tightening of oversight on strategic technology assets and data-sensitive startups, particularly those with potential implications for national security and AI governance.
Neither Meta nor Manus has publicly responded to the latest decision at the time of reporting.
The rejection marks another high-profile example of China asserting tighter control over foreign acquisitions in its domestic tech ecosystem, especially in areas such as artificial intelligence, semiconductors, and data infrastructure.
Further updates are expected as both companies assess the regulatory outcome and potential next steps.
