China blocks Meta’s $2B Manus takeover

China’s state planning agency has moved to block Meta’s acquisition of Manus, the Singapore-based AI startup with Chinese roots, ordering the parties to reverse the deal. Reuters, CNN, BBC, CNBC and NPR all reported that the National Development and Reform Commission issued a brief notice on Monday saying foreign investment in Manus was prohibited under existing laws and regulations, after a review launched earlier this year.

The transaction was reported at about $2 billion, with some later coverage describing it as more than $2 billion or $2.5 billion. Meta acquired Manus in December and had already begun integrating the startup’s team and technology, making any unwind more complicated than a typical failed transaction. Meta said the deal complied with applicable law and said it expected a resolution to the inquiry.

Manus was founded in China but relocated its headquarters and key staff to Singapore in 2025, and Chinese authorities reportedly scrutinized the deal through multiple bodies, including foreign investment, commerce and competition regulators. Several reports said the review also led to restrictions on Manus co-founders, underscoring Beijing’s effort to keep strategic AI capability from leaving the country.