China blocks Meta’s Manus acquisition, citing regulatory review amid tech rivalry between Washington and Beijing.
BEIJING: China has blocked Meta’s acquisition of AI startup Manus, the top economic planning body said Monday, after a regulatory review that reportedly also saw Beijing restrict two co-founders from leaving the country.
Facebook owner Meta had agreed to acquire Manus, an artificial intelligence agent created by a company founded in China but now based in Singapore, the two firms said in December.
Analysts however had warned then the deal could fall foul of regulators at a time of fierce technological rivalry between Washington and Beijing.
The Financial Times reported last month that China had restricted two Manus co-founders from leaving the country, citing three people with knowledge of the matter.
Chief executive Xiao Hong and chief scientist Ji Yichao, who are usually based in Singapore, were reportedly summoned to a meeting in Beijing in March and told they were not allowed to leave China because of a regulatory review of the Meta acquisition.
Beijing’s National Development and Reform Commission said in a statement on Monday that it will “prohibit the foreign investment in the acquisition of the Manus project” and “requires the parties involved to withdraw the acquisition transaction”, without naming Meta.
It added that this was done “in accordance with laws and regulations”.
AFP has contacted Manus and Meta for comment.
Meta said in December that the deal — the financial details of which were not disclosed — would “bring a leading agent to billions of people and unlock opportunities for businesses across our products”.
Bloomberg Intelligence analysts said the purchase was likely aimed at expanding Meta’s AI agent task capabilities, and that it could be worth more than $2 billion.
Manus, created by startup Butterfly Effect, can sift through and summarise resumes or create a stock analysis website, according to its website.
