China Blocks Meta’s $2B Acquisition of AI Startup Manus
China’s state planner has prohibited the foreign acquisition of the Chinese artificial intelligence startup Manus and ordered the parties involved to cancel the transaction, the National Development and Reform Commission said on Monday.
AI startups Moonshot AI and StepFun were among the companies that received the guidance, the report said. Regulators have also imposed similar restrictions on TikTok owner ByteDance and do not want the company to approve secondary share sales to US investors without government approval, it added.
According to a Bloomberg report, Chinese regulators, including the National Development and Reform Commission, have recently instructed several private technology firms to reject US investment in funding rounds unless explicitly approved.
The latest restriction follows Meta’s 2025 bid to acquire the AI startup Manus, valued at more than $2 billion. After the bidding news grabbed headlines, it immediately triggered investigations into foreign investments in Chinese companies and technology exports. Chinese authorities were concerned that the deals could spur other startups to move advanced technology offshore.
Meta had earlier stated that the deal would bring a “leading agent to billions of people and unlock opportunities for businesses across our products”.
