China blocks Meta's $2B buy
- China’s top economic planner ordered Meta to unwind its $2 billion acquisition of Manus on April 27, blocking the Singapore-based AI startup sale. - Beijing had already barred Manus founders from leaving China in March while officials reviewed whether the deal would transfer sensitive AI talent. - The veto reverses a deal announced in December and hardens China’s line on frontier AI exports. (apnews.com)
China ordered Meta to unwind its $2 billion acquisition of Manus on Monday, stopping the Singapore-based AI startup’s sale after a months-long review. (cnbc.com) (businesstimes.com.sg) The order came from China’s National Development and Reform Commission, which said the transaction must be canceled “in accordance with laws and regulations.” (businesstimes.com.sg) (fastcompany.com) Meta announced the Manus deal in December 2025, and Manus said at the time it would keep selling subscriptions through its own app and website while integrating its technology into Meta products. (manus.im) (cnbc.com) Manus builds what the company calls an “action engine,” software meant to carry out tasks and workflows instead of only generating text. Its public site markets tools for research, browser-based automation, email and workplace integrations. (manus.im 1) (manus.im 2) Chinese officials began scrutinizing the deal in January, and by March they had barred Manus founders from leaving China while the national-security review continued, according to reports cited by Reuters and Yahoo Finance. (usnews.com) (finance.yahoo.com) The case turned on where Manus came from, not just where it was headquartered. AP described Manus as a startup with Chinese roots, and TechCrunch reported it was founded by Chinese engineers before relocating to Singapore. (apnews.com) (techcrunch.com) Beijing’s move lands in a wider fight over advanced artificial intelligence technology between China and the United States. AP said officials were concerned about the transfer of advanced technology, while Bloomberg and The Business Times reported criticism inside China over AI know-how leaking to the U.S. (apnews.com) (businesstimes.com.sg) Meta had previously said the acquisition complied with applicable law. Reuters reported on April 27 that the company is now preparing to unwind the purchase after China’s veto. (cnbc.com) (usnews.com) The result is that a deal that looked closed in December is now being reversed in late April, with Manus remaining in Singapore and outside Meta’s ownership. (manus.im) (apnews.com)
