Meta Fails Against China: Manus AI Acquisition Blocked
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Meta, the tech giant led by Mark Zuckerberg, has just faced a major setback in its artificial intelligence expansion strategy. China has decided to cancel Meta's acquisition of Manus AI, an innovative startup in the AI field. This decision comes amid rising geopolitical tensions between China and the United States.
Launched in March 2025, Manus AI quickly established itself as a reference in the artificial intelligence sector. Its platform is capable of executing complex tasks autonomously, without the need for constant human supervision. This technological advancement caught the attention of Meta, which proposed a buyout worth $2 billion. To facilitate this acquisition, Manus AI had been relocated to Singapore, but this was not enough to circumvent Chinese restrictions.
Beijing firmly opposes the acquisition
In January, the Chinese Ministry of Commerce opened an investigation to verify the compliance of this transaction with national laws on export control and foreign investments. In March, Manus co-founders Xiao Hong and Ji Yichao were summoned to Beijing by the National Development and Reform Commission (NDRC) and were prohibited from leaving the country.
With artificial intelligence considered a strategic sector for national sovereignty, China decided to block the acquisition of Manus AI by an American company. On April 28, the government officially announced its decision to halt this transaction, forcing the parties to cancel the agreement.
Consequences for Chinese startups
This case could have significant repercussions for Chinese startups considering relocation to escape Beijing's influence. The strategy of relocating to Singapore, which was supposed to protect these companies from Chinese restrictions, now seems compromised. Meta, which had already begun integrating Manus's teams and technology, finds itself in a delicate situation. The firm stated that the transaction complied with applicable law, but it remains to be seen whether it will contest the Chinese decision.
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