China blocks Meta's $2B Manus deal
- China’s National Development and Reform Commission blocked Meta’s purchase of Manus on Monday, ordering the companies to cancel the $2 billion transaction. - Meta announced the Manus deal in December, but Beijing opened a review in January and later barred co-founders Xiao Hong and Ji Yichao. - The ruling widens China’s clampdown on overseas AI dealmaking and “Singapore-washing” by Chinese start-ups. (reuters.com )
China’s top economic planner blocked Meta’s acquisition of Manus on Monday and ordered the companies to withdraw the transaction. (ca.finance.yahoo.com) (cnbc.com) The National Development and Reform Commission said it was prohibiting foreign investment in Manus under Chinese laws and regulations. Meta announced the takeover in December at about $2 billion. (cnbc.com) (ca.finance.yahoo.com) Manus is a Singapore-registered artificial intelligence start-up with Chinese roots that builds “general AI agents,” software meant to carry out multi-step tasks with limited human input. Its products can handle market research, coding and data analysis. (cnbc.com) (scmp.com) Beijing opened a regulatory review in January, examining export controls, technology transfer and overseas investment rules tied to the deal. In March, Manus chief executive Xiao Hong and chief scientist Ji Yichao were barred from leaving China during that review, Reuters reported. (cnbc.com) (ca.finance.yahoo.com) Meta had said the acquisition complied with applicable law and was meant to expand its AI agent capabilities across consumer and business products. CNBC reported the company had planned to integrate Manus technology into Meta AI. (cnbc.com) (manus.im) The block lands amid a broader U.S.-China fight over advanced computing, chips and artificial intelligence talent. Reuters said Beijing is increasingly trying to stop AI intellectual property and founders from being acquired by U.S. companies. (ca.finance.yahoo.com) CNBC said the decision also rattled founders and investors using a “Singapore-washing” model, in which Chinese start-ups relocate to Singapore to reduce scrutiny from both governments. Manus had moved its headquarters from China to Singapore after its launch. (cnbc.com) (ca.finance.yahoo.com) Reuters quoted Ankura China Advisors’ Alfredo Montufar-Helu saying Beijing is now treating artificial intelligence as a national security asset in the same way it once focused on semiconductors. Monday’s order turns that policy into a live test case for cross-border AI deals. (ca.finance.yahoo.com)
