China blocks Meta’s $2 billion acquisition of AI startup Manus

China’s state planner has prohibited foreign acquisition of Chinese artificial intelligence startup Manus, ordering involved parties to cancel the transaction, the National Development and Reform Commission said on Monday.This follows Meta’s more than $2 billion acquisition bid for the AI startup Manus in 2025, which triggered investigations into foreign investments in Chinese companies and technology exports amid concerns the transaction could spur other startups to move advanced technology offshore.

This comes amid reports that claimed that China plans to restrict top technology firms, including leading AI startups, from accepting US capital without government approval.
Also Read: Markets settling into ‘new certainty’; earnings remain strong: Ed YardeniAs per a Bloomberg report, Chinese regulators, including the National Development and Reform Commission, have recently instructed several private technology firms to reject US investment in funding rounds unless explicitly approved, the report said.

AI startups Moonshot AI and StepFun were among the companies that received the guidance, the report said. Regulators have also decided on similar restrictions for TikTok owner ByteDance and do not want the company to approve secondary share sales to US investors without government approval, it added.The measures are aimed at preventing US investors from gaining stakes in sensitive technologies linked to China’s national security, Bloomberg reported.

NDRC, StepFun, ByteDance, Meta and Moonshot AI did not immediately respond to Reuters requests for comment.

For years, US capital has played a significant role in China’s technology sector, ranging from venture investments by firms such as Sequoia Capital and Benchmark to deep operating ties involving companies such as Apple, Microsoft and Tesla.

American pension funds and endowments have also been major backers of China-focused venture funds, helping fuel growth across internet platforms, electric vehicles and AI.

Washington also imposed its own restrictions earlier this year, limiting U.S. investment in certain Chinese AI, semiconductor and quantum firms, citing security concerns.