China blocks Meta’s Manus deal after months-long probe, thwarting purchase

Top economic planner rejects proposal to buy domestic AI firm, citing ‘laws and regulations’

Beijing has blocked the proposed purchase by Meta Platforms of artificial intelligence firm Manus, a start-up that is officially registered in Singapore but developed its products in mainland China.

The National Development and Reform Commission, the country’s top economic planner, announced the ruling in a statement on Monday, and asked the parties involved in the deal to cancel the transaction.

Neither Meta nor Manus immediately responded to a request for comment on Monday.

The decision followed an announcement in early January from China’s Ministry of Commerce that it would conduct a review of the deal, assessing whether it was consistent with the country’s regulations on export controls, technology exports and external investments.

The South China Morning Post reported the investigation a day before the official announcement, citing two sources. One of them said that Beijing feared the Manus case could set an uncomfortable precedent for other AI companies, leading more to move their operations abroad.

The start-up rose to fame in March 2025 after releasing what it described as the world’s first general AI agent, or software able to complete tasks on a user’s behalf. The team initially operated in Beijing and Wuhan, but had moved to Singapore by mid-June, laying off some China-based staff and shutting down its Chinese social media accounts.

In recent years, large Chinese tech firms and start-ups alike have set up overseas subsidiaries in a trend known as chuhai, or “going to sea”, taking their home-grown innovations abroad. Beijing has consequently explored ways to assert itself in cross-border transactions that involve domestic technology, data, talent or markets.