China's National Development and Reform Commission (NDRC) has blocked Meta's $2 billion acquisition of Manus, an AI startup founded by Chinese engineers that later relocated to Singapore. The decision, announced Monday, follows a months-long probe and represents one of China's most aggressive moves against a cross-border tech deal.
The NDRC ordered both parties to unwind the transaction entirely, offering no specific reason for the veto. "The National Development and Reform Commission has made a decision to prohibit foreign investment in the Manus project in accordance with laws and regulations, and has required the parties involved to withdraw the acquisition transaction," the agency said in a statement.
Meta CEO Mark Zuckerberg had acquired Manus late last year, aiming to bolster his company's push into AI agents. However, the deal's completion remained uncertain as Chinese regulators launched an investigation into national security concerns. By March, approximately 100 Manus employees had already relocated to Meta's Singapore offices, complicating the unwinding process.
The block deals a significant setback to Meta's AI ambitions and underscores the growing friction between U.S. tech giants and Chinese regulatory authorities over sensitive technology transfers.