In a major blow to Mark Zuckerberg's AI ambitions, Chinese regulators have officially blocked Meta Platforms from acquiring AI startup Manus. This decision comes days after reports indicated that China had ordered its leading artificial intelligence companies to stop accepting American capital, aiming to prevent sensitive AI breakthroughs from falling into US hands.
China's Decision to Block the Deal
According to a report by South China Morning Post, China's top economic planner, the National Development and Reform Commission (NDRC), ordered both companies to cancel the transaction immediately. The ruling follows a months-long investigation into whether the deal violated China's strict export controls and national security regulations.
Why China Has a Problem with Meta Buying Manus
Manus became a tech sensation in early 2025 after releasing what it called the world's first 'general AI agent' – software capable of completing complex tasks on a user's behalf. While Manus is officially registered in Singapore, its roots are firmly in mainland China. The company's core technology was developed by teams in Beijing and Wuhan.
However, in mid-2025, the startup began moving its operations to Singapore and shutting down its Chinese social media presence. Beijing's regulators reportedly feared this move was a blueprint for 'technology leakage,' where homegrown Chinese innovation is quietly moved abroad to be acquired by American giants like Meta. Previous reports from the Financial Times and The New York Times claimed that the co-founders of Manus were summoned to meetings with Chinese officials in March and have since been barred from leaving the country.
Meanwhile, China has been tightening its grip on technology exports since 2020, specifically targeting algorithms. This is said to be a 'tit-for-tat' response after the US pressured ByteDance to sell TikTok's American operations and previously blocked the sale of Nvidia's high-end AI chips.
White House Actions
The block also coincides with the White House launching its own strict rules to prevent American money from funding Chinese AI and semiconductor development. Last week, the White House issued an urgent directive to government agencies, accusing China of running a massive, state-sponsored campaign to steal American AI technology. In a memo written by Michael Kratsios, Director of the White House Office of Science and Technology Policy, the Trump administration claimed that foreign entities – primarily based in China – are engaged in 'industrial-scale' efforts to copy and dismantle the United States' most advanced AI systems.
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