China has officially blocked Meta's proposed acquisition of the Chinese-founded artificial intelligence startup Manus, valued at $2 billion. This action reflects the country's apprehensions about potential technology loss to the United States amid escalating tech tensions. On Monday, the state planner issued a statement demanding both parties to reverse the deal following an investigation that began earlier this year.
The decision is likely to impact the landscape of China's AI startup ecosystem, coming just weeks before a significant summit between US President Donald Trump and Chinese leader Xi Jinping, where discussions on trade and technology are anticipated. The blockage also highlights the growing divide in global tech development, complicating cross-border investments in critical areas such as AI and semiconductors.
Unwinding the acquisition will pose practical challenges, as Meta had already incorporated Manus into its operations and integrated its team shortly after announcing the deal in December. A spokesperson for Meta stated that the acquisition "complied fully with applicable law," expressing hope for a suitable resolution to the situation.