Beijing has blocked Meta's $2 billion deal to acquire the AI startup Manus

Chinese authorities have officially blocked U.S.-based Meta from acquiring the Singaporean artificial intelligence startup Manus, citing violations of investment regulations. The National Development and Reform Commission ordered the parties to cancel the agreement, describing the deal as an attempt to weaken the country’s technological standing. 

The Financial Times reports on the blocking of the large-scale deal amid the rivalry between Washington and Beijing.

The decision was announced on the eve of a planned summit between U.S. President Donald Trump and Chinese leader Xi Jinping, where the parties are set to discuss trade tensions. Earlier, Chinese regulators restricted the startup’s founders from traveling abroad and launched a thorough review of the deal for compliance with export control regulations. The situation is critical for Meta, as the company has already partially integrated Manus’s technologies into its software products.

In the event of a final termination of the contract, Meta faces a complex exit process, which may involve reselling the asset or seeking new partners. Beijing has demonstrated a hardline stance on protecting its own AI developments, using antitrust legislation as a tool of geopolitical influence. This decision underscores the deep technological divide between countries, which is widening against the backdrop of global challenges and Beijing’s indirect support for the Russian economy. Thus, the high-tech market remains the main arena of confrontation between the world’s two largest economies.

China’s gross domestic product grew by 5% year-over-year in the first quarter, exceeding analysts’ expectations and accelerating compared to the previous quarter.

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