China Blocks Meta From AI Startup Firm Acquisition Amid US Rivalry

China’s state planner has blocked US tech giant Meta Platforms from acquiring Chinese artificial intelligence startup Manus, ordering the deal’s cancellation as Beijing and Washington jostled for supremacy in frontier industries.

The decision by the National Development and Reform Commission (NDRC) highlighted Beijing’s commitment to stop AI talent and intellectual property from being acquired by US entities, as Washington continued efforts to hamper China’s AI development through export controls designed to cut off access to advanced US chips.

The move wws also expected to add another thorny issue to the agenda of a planned mid-May summit in Beijing between US President Donald Trump and Chinese President Xi Jinping, amid deepening tensions over trade and technology.

California-based Meta, which owns Facebook, acquired Manus in December for more than $2 billion to boost its capabilities in AI agents—tools designed to execute complex tasks with minimal human intervention, going beyond traditional chatbots.

However, in March, Manus CEO Xiao Hong and chief scientist Ji Yichao were barred from leaving China as regulators reviewed the deal, according to sources familiar with the matter.

Manus had been hailed early last year by state media and commentators as China’s next “DeepSeek” after unveiling what it described as the world’s first general AI agent.

Months later, the company relocated its headquarters from China to Singapore, joining a growing list of Chinese firms moving abroad to reduce exposure to escalating US-China tensions.

Alfredo Montufar-Helu, managing director at Ankura China Advisors, said Beijing’s intervention reflected how artificial intelligence has become central to strategic competition between the world’s two largest economies, with controls once focused on semiconductors now extending into AI.

“China is saying we will prevent foreign acquisition of assets we consider important for national security — and AI is now clearly one of them,” he said, adding that the move also signalled to firms that relocating overseas will not shield them from regulatory scrutiny.