China has abruptly moved to block a $2 billion acquisition by Meta Platforms Inc., ordering the cancellation of its planned takeover of AI startup Manus in a decision that underscores intensifying geopolitical competition over advanced technologies. The ruling, issued by the National Development and Reform Commission, represents a rare intervention at such a late stage in a deal that had been largely completed.
In a brief statement released Monday, Chinese authorities directed that the acquisition be unwound, effectively nullifying what had initially been seen as a landmark cross-border transaction in the artificial intelligence sector. The move comes amid growing concern in Beijing over the transfer of sensitive technologies to foreign companies, particularly those based in the United States.
The deal, first announced in December, involved Meta’s planned purchase of Manus, an emerging player in so-called agentic AI, a field focused on systems capable of autonomous decision-making and complex task execution. At the time, the acquisition was widely viewed as a model for Chinese startups seeking global expansion and investment. However, sentiment shifted quickly as scrutiny intensified over the potential national security implications.
Chinese regulators launched a probe shortly after the announcement, examining whether the transaction violated rules governing foreign investment and the export of critical technologies. The investigation appears to have concluded that the risks outweighed the benefits, prompting authorities to take the unusual step of reversing the deal.
Critics within China had voiced strong opposition to the acquisition, arguing that it would result in the loss of valuable intellectual property to a strategic rival. Concerns centered on the possibility that advanced AI capabilities developed domestically could be absorbed into foreign ecosystems, potentially weakening China’s competitive position in a sector widely regarded as central to future economic and military power.
