China blocks Meta's Manus acquisition

China ordered Meta to unwind its $2 billion-plus acquisition of Manus on April 27, blocking a deal that had already closed. (reuters.com) The order came from China’s National Development and Reform Commission, which said the transaction had to be terminated under Chinese laws and regulations. Reuters and CNBC reported Beijing acted over national security and technology leakage concerns. (reuters.com) (cnbc.com) Manus is a Singapore-incorporated artificial intelligence startup with Chinese roots. It was founded in China, later moved its headquarters to Singapore, and built software agents that can carry out tasks such as research, coding, and data analysis. (cnbc.com) (techcrunch.com) Meta announced the acquisition in late December 2025 as part of Mark Zuckerberg’s push into “agentic” artificial intelligence, software meant to do work instead of only answering prompts. CNBC reported Meta said Manus would be folded into its broader artificial intelligence products. (cnbc.com) The price was reported at more than $2 billion. Reuters said Beijing’s ruling came about four months after the deal closed and after Manus staff and technology had already started integrating into Meta. (reuters.com) (businesstimes.com.sg) Manus had become a prized target because of its growth. In a December 17 post on its own site, the company said it had crossed $100 million in annual recurring revenue eight months after launch and reached a revenue run rate above $125 million. (manus.im) Chinese scrutiny had been building for weeks before the veto. The Information reported on April 15 that Beijing’s investigation into the sale had already rattled Chinese startup founders who saw overseas acquisitions as a path to cash out. (theinformation.com) The fight sits inside a broader U.S.-China contest over who controls advanced artificial intelligence talent, models, and products. Reuters reported Beijing is tightening scrutiny of U.S. investment in domestic startups developing frontier technologies. (reuters.com) Meta has not publicly laid out how it will separate technology and personnel that had already begun moving into the company. The next step, according to Reuters and The Information, is an unwinding process rather than an appeal. (reuters.com) (theinformation.com)