China has blocked Meta's planned acquisition of the artificial intelligence startup Manus, a company with Chinese roots that is based in Singapore. The decision was announced on Monday by China's National Development and Reform Commission (NDRC), the country's top planning agency.
Official Statement
In a brief statement, the NDRC said it was prohibiting a foreign acquisition of Manus and required all parties to withdraw from the deal. The statement did not explicitly name Meta, the parent company of Facebook and Instagram. The decision was made by the commission's Office of the Working Mechanism for Security Review of Foreign Investment, in accordance with Chinese laws and regulations. No further explanation for the ban was provided.
Background of the Deal
Meta first announced its intention to acquire Manus in December, marking a rare instance of a major U.S. technology company purchasing an AI firm with strong ties to China. Manus develops a "general-purpose" AI agent capable of autonomously performing complex, multi-step tasks. The acquisition was expected to enhance Meta's AI offerings across its platforms.
Meta had stated that there would be no continuing Chinese ownership interests in Manus and that the startup would discontinue its services and operations in China. However, in January, Chinese authorities launched an investigation into whether the deal complied with local laws and regulations.
Regulatory Scrutiny
China's commerce ministry previously stated that any enterprises involved in outward investment, technology exports, data transfers, and cross-border acquisitions must adhere to Chinese law. Meta had noted that most of Manus's employees were based in Singapore.
Meta's Response
In a response issued on Monday, Meta asserted that the transaction "complied fully with applicable law." The California-based company expressed confidence in an appropriate resolution, stating, "We anticipate an appropriate resolution to the inquiry."
