Trending 
In a significant move that highlights the escalating technological rivalry between Washington and Beijing, China has blocked Meta’s acquisition of the AI startup Manus.
The National Development and Reform Commission (NDRC) of China announced on Monday that it would prohibit foreign investment in the acquisition of Manus, a project initially developed by a Chinese company but now based in Singapore. Beijing’s decision also reportedly involved imposing restrictions on the two co-founders of Manus, preventing them from leaving the country.
Meta, the parent company of Facebook, had announced in December its intention to acquire Manus, a cutting-edge artificial intelligence agent developed by Butterfly Effect, a startup. This AI technology, designed to perform tasks such as summarising resumes and creating stock analysis websites, was seen as a valuable asset for Meta’s expanding AI capabilities.
Analysts speculated that the deal could be worth over $2 billion, and Meta expressed excitement over its potential to unlock opportunities for businesses across its products.
However, the deal faced intense scrutiny from Chinese regulators. The Financial Times reported that in March, Manus’ CEO Xiao Hong and chief scientist Ji Yichao, who are typically based in Singapore, were summoned to Beijing and informed they were not allowed to leave the country due to the ongoing regulatory review.
Chong Ja Ian, a political science professor at the National University of Singapore, suggested that the move aligns with China’s broader strategy of strengthening control over its homegrown technology.
The US-China tech rivalry is growing, and Beijing is keen to assert greater control, especially in sectors deemed strategically important, such as artificial intelligence.
Dylan Loh, a professor at Singapore’s Nanyang Technological University, added that China is increasingly focusing on “securitising” its AI industry to prevent the outflow of talent, data, and capital. The government has also moved to restrict technology firms from accepting US capital without explicit approval, signalling Beijing’s intent to protect its domestic technology landscape.
Chandy Ye, a Hong Kong solicitor, noted that this decision is likely to have a chilling effect on other Chinese AI companies, prompting them to rethink their international expansion strategies.
Despite Meta’s claims that the acquisition complied with all applicable laws, the ongoing scrutiny from Beijing underscores the complex dynamics of global tech competition.
China’s actions reflect its growing resolve to safeguard its technological ecosystem, with tighter controls on investments and partnerships with foreign companies, particularly those linked to the United States.
