China blocks Meta's acquisition of AI firm Manus

China blocks Meta's acquisition of AI firm Manus

 China has decided to halt Meta Platforms' acquisition of Manus, a startup specializing in agent AI technology, in a surprise move that ends a controversial deal that had raised concerns about the potential leakage of technology to the United States.

According to Bloomberg News, the National Development and Reform Commission (NDRC)—one of Beijing's most powerful planning bodies—issued a brief statement on Monday ordering the cancellation of the deal, explaining that the decision was made "in accordance with applicable laws and regulations," without providing further details.

A Blow to China's AI Sector

This decision is expected to cast a shadow of uncertainty over China's rapidly growing AI sector, particularly just weeks before a highly anticipated summit between US President Donald Trump and his Chinese counterpart, Xi Jinping. The deal was initially hailed as a model for startups with global ambitions, but criticism later mounted, with warnings of losing strategic technology to a geopolitical rival.

Technological sovereignty trumps legal considerations. Manus was founded in China before relocating its headquarters and key staff to Singapore in 2025, raising questions about Beijing’s ability to intervene in a deal that fell outside its direct legal purview.

However, analysts believe the Chinese decision sends a clear message.

“What happened with Manus is a watershed moment… The signal from Beijing is clear: the legal location of the entity is not the deciding factor, but rather effective control of the technology,” said Ke Yan, a technology analyst at DZT Research, according to Bloomberg News.

Implications for Meta and the AI ​​Competition

The decision represents a potential setback for Meta, which had been striving to accelerate its position in the AI ​​race against major competitors such as Microsoft, Alphabet, OpenAI, and Anthropic. Manus was intended to enable Meta to advance in the field of "AI agents," systems capable of independently performing complex tasks using artificial intelligence.