China Blocks Meta’s $2B Acquisition of AI Startup Manus

BEIJING — China on Monday blocked Meta Platforms’ $2 billion acquisition of Manus, a Singapore-based artificial intelligence startup with Chinese origins, according to CNBC (https://www.cnbc.com/2026/04/27/meta-manus-china-blocks-acquisition-ai-startup.html).

CNBC described the decision as one of the most significant cross-border regulatory interventions in the AI sector to date.

Manus, which is headquartered in Singapore but has roots in China, had been the target of a $2 billion takeover bid from Meta, the parent company of Facebook and Instagram. The deal would have given Meta access to Manus’ AI capabilities as the Menlo Park, California-based company continues to invest heavily in artificial intelligence across its product lines.

China’s decision to intervene in the acquisition of a company based in a third country signals Beijing’s readiness to assert regulatory authority over what it considers strategically important AI assets — even when those assets are nominally outside its borders, CNBC reported.

The blocked deal may carry broad implications for U.S. technology companies pursuing AI acquisitions, analysts say. American firms have sought to acquire AI startups globally as the race to develop advanced AI systems accelerates, but China’s willingness to assert regulatory authority over companies with Chinese heritage could complicate future deal-making.

The move comes amid heightened tensions between Washington and Beijing over AI and semiconductor technology. The United States has imposed sweeping export controls on advanced chips and AI technology bound for China, while Beijing has responded with its own restrictions on critical minerals and technology transfers.

For Meta, the blocked acquisition could represent a setback in its AI ambitions. The company, led by Chief Executive Mark Zuckerberg, has made AI development a central priority, pouring billions into large language models, AI-powered features and infrastructure. The Manus deal would have bolstered those efforts.

The regulatory action also raises questions for other AI startups with cross-border ties. A growing number of AI companies founded by Chinese entrepreneurs operate out of Singapore, the United States and other countries, and analysts say China’s assertion of authority over Manus could create uncertainty about their ability to pursue exits or partnerships with Western firms.

Neither Meta nor Manus immediately responded to requests for comment, according to CNBC.