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On April 27, 2026, China’s National Development and Reform Commission (NDRC) formally blocked Meta Platforms’ (Facebook’s parent company) approximately $2 billion (£1.48 billion) acquisition of artificial intelligence start-up Manus, ordering “the parties involved to withdraw the acquisition transaction.” The decision marks another significant event in the ongoing US-China tech rivalry.
The deal was announced in late December 2025, when Meta stated that acquiring Manus would allow its AI agent technology to be integrated across Meta’s platforms, significantly boosting the company’s artificial intelligence capabilities. Manus is known for its “truly autonomous” AI agent technology — unlike traditional chatbots that require repeated back-and-forth interaction, Manus’s service can independently plan, execute, and complete tasks based on user instructions.
According to multiple reports, the NDRC determined after its review that the deal involved areas where foreign investment is prohibited, leading to the blocking decision. A Meta spokesperson told the BBC that “the transaction complied fully with applicable law” and added that “we anticipate an appropriate resolution to the inquiry.”
Although Manus is currently headquartered in Singapore, it was founded and previously based in China, placing it under Chinese regulatory jurisdiction. China maintains strict laws and regulations in the technology sector, including controls on technology exports and sales to foreign firms. Beijing previously exercised similar approval authority in the context of ByteDance’s sale of TikTok.
Notably, in March there were reports that Manus’s two co-founders had been prevented from leaving China amid the regulatory review of the acquisition. Meta responded at the time that “the outstanding team at Manus is now deeply integrated into Meta, running, improving and growing the Manus service.” If the acquisition is required to be unwound, it could pose significant difficulties for Meta.
The decision also comes against a backdrop of escalating US-China technology tensions. Last Friday, the White House announced it would work more closely with US AI companies to combat what it described as “industrial-scale campaigns” of technology theft, citing new intelligence showing “foreign entities, principally based in China” were copying US AI models. A representative of China’s embassy in Washington pushed back against “the unjustified suppression of Chinese companies by the US,” stating that “China is not only the world’s factory but is also becoming the world’s innovation lab.”
Additionally, Meta has recently told staff it would cut thousands of jobs amid increased AI spending. Analysts had previously described the acquisition of Manus as a “natural fit” for Meta, as CEO Mark Zuckerberg has been aggressively driving the company’s AI development.
This blocking decision once again underscores the profound impact of geopolitical factors in the global AI race, and how technology sovereignty is becoming a central arena of great-power competition.
Sources: BBC News, Financial Times