In a high-profile move that highlights growing regulatory scrutiny of cross-border artificial intelligence deals, China’s top economic planning body has formally blocked Meta Platforms’ planned purchase of Manus, a Singapore-headquartered AI startup with founding origins in China. The announcement, made public on Monday, marks one of the most prominent restrictions on a major U.S. technology company’s acquisition of an AI-linked firm with Chinese connections in recent years.
The official order came from the Office of the Working Mechanism for Security Review of Foreign Investment under the National Development and Reform Commission (NDRC), China’s leading planning agency. In its brief public statement, the NDRC confirmed it was prohibiting the foreign takeover of Manus and mandating all parties involved unwind the transaction completely. Notably, the agency did not explicitly name Meta, the American parent company of major social platforms Facebook and Instagram, in its public notification.
This formal ban follows a preliminary investigation launched by Chinese regulators earlier this year, after the deal was first unveiled to the public. The NDRC did not release any additional details or expand on the specific justifications for blocking the acquisition in its public statement.
The proposed deal was unusual from its inception: it represented a rare instance of a large U.S. technology group acquiring an artificial intelligence firm with deep founding ties to China. Manus has gained recognition in global AI circles for developing a general-purpose AI agent capable of completing multi-step, complex work tasks without continuous human input. For Meta, the acquisition was expected to accelerate the company’s development of advanced AI capabilities to enhance product offerings across its entire ecosystem of social and digital platforms.
Even before the formal investigation was launched, Meta sought to address early regulatory concerns by confirming that after the acquisition closed, there would be no remaining Chinese ownership stakes in Manus, and the startup would end all its services and operations within mainland China. Still, Chinese regulatory bodies announced in January that they would launch a formal review to assess whether the deal aligned with the country’s existing laws and regulations governing foreign investment.
At the time of that announcement, China’s Ministry of Commerce emphasized that all companies engaging in outward investment, technology transfers, cross-border data flows, and cross-border acquisition transactions are required to comply fully with all relevant Chinese legal requirements. Meta has repeatedly noted that the vast majority of Manus’ employees are based in Singapore, the startup’s official registered headquarters.
In a written response to Monday’s ruling, Meta maintained that the proposed transaction had complied fully with all applicable laws. “We anticipate an appropriate resolution to the inquiry,” the California-headquartered company said in its statement, giving no further indication of what steps it might take moving forward. Industry analysts say the ruling underscores the increasing regulatory attention around the world to national security risks tied to AI and cross-border technology acquisitions, as global powers race to advance their own domestic artificial innovation ecosystems.