China Blocks Meta's Manus Acquisition

China's National Development and Reform Commission blocked Meta's acquisition of Manus and demanded that the deal be reversed.

According to Bloomberg, the deal was worth about $2 billion, Manus employees had already joined Meta AI's team, and some investors had even received payment. Meta said the deal complied with the law and that it expects an appropriate resolution. Meta shares rose 0.5% in Monday trading.

Manus started out in Beijing but relocated to Singapore this year, and Chinese authorities moved to review the deal on the grounds that it still relies on Chinese personnel and technology. The co-founders' ability to leave the country is also reportedly restricted.

The move shows that AI decoupling between Washington and Beijing is accelerating further.

• In response to US sanctions and export controls, China is tightening control over foreign capital and companies.
• The US is also strengthening regulations aimed at blocking Chinese AI investment and technology inflows.
• The article also mentions the halted Ant Group IPO, the investigation into Didi after its listing, NeurIPS's temporary ban on submissions from sanctioned companies, and the possibility that Chinese AI firms may be required to seek prior approval for US-bound investment.

AI startups now face a harder choice: stay in China and give up US capital and chip access, or move overseas and accept additional scrutiny from Chinese authorities.