China Blocks Meta’s $2 Billion Acquisition Of AI Startup Manus In A Move That Sends Shockwaves Through The Global AI Race
China just sent the global AI industry a message it cannot ignore.
According to Yahoo Finance, China’s National Development and Reform Commission issued a one-line statement Monday ordering the cancellation of Meta’s $2 billion acquisition of agentic AI startup Manus, prohibiting foreign investment in the company in accordance with laws and regulations.
The move is extraordinary because of how far along the deal already was. Manus employees had already joined Meta’s offices in Singapore, capital had been transferred, and investors including Tencent, ZhenFund and Hongshan had already received their proceeds. The deal was effectively done.
Manus was supposed to help Meta leapfrog into a leading position in the rapidly growing market for AI agents, services that use artificial intelligence to autonomously execute complex tasks. Its co-founders relocated from China to Singapore in 2025, but Beijing made clear that legal geography does not determine its jurisdiction.
The block came weeks before a high-profile summit between Trump and Xi Jinping. Beijing has since instructed key AI firms including Moonshot AI and Stepfun to reject US capital in future funding rounds unless explicitly approved.
The closest parallel is Beijing’s 2021 order forcing Didi Global to delist from the New York Stock Exchange, a move that effectively ended one of China’s most celebrated tech success stories.
This is no longer just trade war. This is a full AI cold war. Like this business focused news? Read our previous article here.
