China Pulls the Plug on Meta’s $2 Billion Manus Takeover

Beijing’s top planning agency ordered all parties to withdraw from the deal on April 27, citing national security review provisions, the most direct move yet by China to prevent advanced AI capabilities from leaving the country.

China has blocked Meta’s $2 billion acquisition of Manus, a Singapore-based agentic AI startup with roots in Beijing, in what analysts are calling Beijing’s sharpest intervention yet against the transfer of AI talent and technology to the United States.

The National Development and Reform Commission, China’s top state planning agency, issued a one-line statement on April 27 saying it was prohibiting a foreign acquisition of Manus and directing all parties to withdraw from the transaction. The commission did not name Meta specifically and gave no detailed reasons for the ban. The decision was made through its Office of the Working Mechanism for Security Review of Foreign Investment, in accordance with Chinese laws and regulations.

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Meta had announced the acquisition in December 2025, saying it intended to accelerate AI automation across its consumer and enterprise products, including its Meta AI assistant. The company had maintained that Manus’ employees were mostly based in Singapore, that there would be no continuing Chinese ownership interests in Manus, and that Manus would wind down its China operations entirely. Manus’ website, as of Monday, still stated the company “is now part of Meta,” suggesting the deal had already closed operationally.

China’s Ministry of Commerce previously shared its concerns in January, launching a review of whether the acquisition complied with export controls, technology transfer rules, and overseas investment regulations. Meta at the time told CNBC that the deal “complied fully with applicable law,” a position it maintained on Monday, adding that it anticipates “an appropriate resolution to the inquiry.”

Manus traces its origins to Beijing-registered entities established several years ago, even though it was incorporated as Butterfly Effect Pte in Singapore before the acquisition. Lian Jye Su, chief analyst at Omdia, said the ban highlights how China views AI talent and capabilities as a core national security asset. He added that the move mirrors U.S. restrictions on Chinese technology investment and could deter similar acquisition bids by American tech companies going forward.

Disclaimer: This article is based on publicly available information from CNBC and Bloomberg. NervNow has not independently verified the claims.

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