China has blocked US tech giant Meta from acquiring the AI firm Manus, in a move that analysts say could set a new precedent for foreign investment in Chinese deep-tech companies. The decision underscores Beijing's tightening grip on artificial intelligence as a matter of national security.
China's National Development and Reform Commission (NDRC) issued a one-line statement on Monday, saying it would "prohibit foreign investment in Manus in accordance with laws and regulations, and requires the parties involved to withdraw the acquisition transaction." The announcement forces Meta to unwind its purchase of Manus, reportedly valued at upwards of $2 billion (€1.7 billion).
Meta, which owns Facebook, Instagram and WhatsApp, said in a statement that its purchase of Manus had "complied fully with applicable law" and that it "anticipates an appropriate resolution to the inquiry." The California-based company had announced the acquisition in December, stating there would be "no continuing Chinese ownership."
Manus made headlines last year after unveiling what it called the world's first general AI agent, capable of tasks such as coding, market research, and budget preparation. The company does not build its own AI model but operates on top of existing Western large language models. In July, Manus shut its Chinese offices and relocated operations to Singapore, where its parent company was re-incorporated, a move that circumvented both US restrictions on investing in Chinese AI firms and Chinese rules limiting IP and capital transfers abroad.
The decision highlights the intensifying US-China tech rivalry, with China racing to surpass American AI innovation. The launch of China's DeepSeek model earlier this year caused US stocks like Meta, Nvidia, and Microsoft to plummet before recovering. Meta's acquisition of Manus was a rare case of a US tech giant buying an AI firm with strong links to China.
"China is showing the world that it is willing to play hardball when it comes to AI talents and capabilities, which the country views as a core national security asset," said Lian Jye Su, chief analyst at Omdia. "It is strongly indicative of what Chinese authorities may do going forward regarding acquisitions involving Chinese deep-tech companies."
Source: www.dw.com