China blocks Meta’s acquisition of Chinese-founded AI startup Manus

Hong Kong —

China has moved to block Meta’s $2 billion acquisition of Chinese-founded artificial intelligence startup Manus, a decision that reflects Beijing’s concerns that it could lose key technology to the United States amid an intensifying tech war.

The country’s state planner made a brief statement Monday demanding the two parties unwind the deal following a probe that Beijing launched into the acquisition earlier this year.

The move, which is expected to have a chilling effect on China’s AI startup scene, came just weeks ahead of US President Donald Trump’s much anticipated summit with Chinese leader Xi Jinping in Beijing. The two are expected to iron out disputes on several key issues, ranging from trade to technology controls.

Beijing’s decision reinforces the bifurcation of global technology development as US-China tension heats up, and underscores the increasingly challenging environment for cross-border investments in critical sectors such as AI and semiconductors.

Unwinding the deal, however, will be complicated in practice. Soon after announcing the acquisition in late December, Meta had integrated Manus into its internal systems and executives of the startup had joined the American tech giant.

For Meta, the blocked acquisition could represent a missed opportunity to strengthen its AI capabilities as the race for the technology with rivals like Google and OpenAI picks up.

In response to Beijing’s decision, a Meta spokesperson told CNN that the transaction “complied fully with applicable law.”

“We anticipate an appropriate resolution to the inquiry,” the person added, without elaborating on how the company expects to reach a solution with Beijing.

CNN has reached out to Manus for comment.

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