China’s top economic planning agency has prohibited Meta Platforms’ attempt to acquire Chinese artificial‑intelligence startup Manus, ordering the parties to abandon the transaction.
Beijing’s National Development and Reform Commission (NDRC) issued a statement on Monday indicating that “foreign investment in the acquisition of the Manus project is prohibited” and that “the parties involved are required to withdraw the acquisition transaction.” The decision follows media reports that two co‑founders of Manus had been barred from leaving China earlier this month.
Meta, the owner of Facebook, Instagram and WhatsApp, announced in February its intention to purchase a controlling stake in Manus, a Shanghai‑based firm specializing in large‑language‑model technology. The deal, valued at an undisclosed amount, was positioned as part of Meta’s broader push into generative AI to enhance its social‑media platforms and advertising services.
The NDRC’s intervention underscores China’s tightening oversight of outbound investments and foreign acquisitions of domestic technology assets. In recent years, Chinese regulators have introduced stricter rules governing cross‑border transactions, particularly in sectors deemed strategic, such as artificial intelligence, semiconductors and biotechnology. The move aligns with the country’s “dual circulation” strategy, which seeks to prioritize domestic innovation while maintaining tighter control over capital outflows.
The restriction on Manus’s co‑founders raises additional concerns about the operating environment for Chinese tech entrepreneurs. While no official comment was provided on the individuals’ status, the reports suggest that authorities are closely scrutinising the movement of key personnel linked to high‑profile foreign deals.
Industry analysts note that the blockage could have broader implications for Meta’s AI ambitions in Asia. The company has been aggressively expanding its AI capabilities, investing in research labs and partnering with local firms to adapt its services to regional markets. Losing access to Manus’s technology may delay Meta’s rollout of advanced AI features in the Chinese market, where regulatory hurdles already limit the company’s direct presence.
The NDRC’s directive is expected to be enforced immediately, with both Meta and Manus instructed to cease any further steps toward completing the acquisition. Legal counsel for the firms is likely to assess options, though the regulatory stance suggests limited prospects for appeal.
The episode highlights the growing complexity of cross‑border technology deals involving China, signaling that foreign investors must navigate an increasingly stringent approval landscape. As global interest in AI continues to surge, regulatory frameworks will play a decisive role in shaping the pace and direction of international collaborations.
