China blocks Meta-Manus deal amid rising scrutiny over AI tech transfers

China has formally blocked Meta Platforms from acquiring AI startup Manus, dealing a blow to a proposed purchase that had triggered scrutiny within Beijing. The National Development and Reform Commission (NDRC) prohibited foreign investment in the Manus project and directed all parties to terminate the transaction. Manus, which gained prominence in March 2025 after unveiling what it claimed was the world's first general AI agent, was seen as a rare example of a Chinese-founded startup pursuing global expansion. Critics in China raised concerns over the potential loss of strategically important intellectual property to a geopolitical rival. Beijing's intervention underscores a tightening grip over high-value AI assets, especially those with potential national security implications. The move comes amid escalating US-China tech tensions and highlights long-standing friction between Meta and Chinese authorities.