The Chinese government has declared its intention to halt tech behemoth Meta from pursuing the acquisition of the artificial intelligence (AI) startup Manus, thereby tightening its scrutiny of foreign investments in domestic frontier technology enterprises.
On Monday, the National Development and Reform Commission (NDRC) of China announced its prohibition regarding the foreign takeover of Manus, although it refrained from explicitly naming Meta.
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This decisive action underscores Beijing’s heightened apprehension concerning US entities acquiring Chinese AI talent and intellectual property, particularly as Washington intensifies efforts to restrict access to advanced semiconductor technologies for Chinese firms.
The rationale for China’s bid to nullify the agreement involving a Singapore-based entity remains ambiguous, raising questions about the potential unwinding of any finalized transaction.
Manus, which boasts origins in China but operates from Singapore, specializes in deploying general-purpose AI agents capable of executing intricate tasks with minimal human oversight.
The NDRC’s statement clarified that the move to annul the deal was conducted in accordance with domestic laws and regulations.
In response, California-based Meta asserted: “The transaction adhered completely to relevant legal frameworks. We remain optimistic about a favorable resolution to this inquiry.”
A spokesperson from the White House remarked that the Trump administration “will persist in safeguarding America’s innovative technology sector against any undue foreign encroachment.”
Meta revealed in December its plans to acquire Manus — a notable instance of a major US tech company securing an AI entity with substantial connections to China. This acquisition was anticipated to strengthen AI capabilities across Meta’s platforms.
Meta also emphasized that there would be “no ongoing Chinese ownership interests in Manus,” noting that Manus was set to conclude its operations in China.
However, in January, Chinese authorities announced a probe into whether the acquisition complied with domestic legal standards.
Following a $75 million funding round led by US venture capital firm Benchmark in May 2025, Manus shuttered its offices in China, resulting in the layoff of dozens of staff members, and subsequently relocated its operations to Singapore.
This strategic relocation enabled Manus’s parent company, Butterfly Effect, to reincorporate in Singapore, thus circumventing US investment restrictions targeting Chinese AI companies and adhering to Chinese regulations that limit the overseas transfer of IP and capital.
The Chinese initiative to obstruct the acquisition arrives just weeks ahead of a scheduled mid-May summit between US President Donald Trump and Chinese President Xi Jinping in Beijing.
Source link: Aljazeera.com.
