China Blocks Meta's Acquisition of Manus
Facebook-owner Meta's planned acquisition of the artificial intelligence start-up Manus has been blocked by Chinese regulators.
Announced in late December, Meta stated that the deal, valued at approximately $2 billion (£1.48 billion) at the time, would enable Manus' AI agents to enhance Meta's own AI capabilities across its platforms.
However, reports on Monday indicated that Beijing's National Development and Reform Commission (NDRC) had prohibited foreign investment in the transaction, mandating
"the parties involved to withdraw the acquisition transaction".
A Meta spokesperson told the BBC,
"the transaction complied fully with applicable law". They added,
"We anticipate an appropriate resolution to the inquiry."
This development follows months of scrutiny by Chinese regulators regarding Meta's acquisition of Manus.
Manus has attempted to distinguish itself from competing AI developers by offering what it describes as a
"truly autonomous"agent. Unlike many chatbots that require repeated prompts before delivering the desired response, Manus claims its service can independently plan, execute, and complete tasks according to user instructions.
At the time of the announcement, analysts characterized the deal as a
"natural fit"for Meta, whose founder and chief executive, Mark Zuckerberg, has been actively advancing the company's AI development. Recently, Meta informed its staff of plans to cut thousands of jobs amid increased investment in AI.
Tech Tensions and Regulatory Challenges
Although Manus is currently headquartered in Singapore, it was originally founded and based in China, thus falling under Chinese regulatory jurisdiction.
China enforces stringent laws and regulations on its technology sector, including restrictions on the export or sale of tech assets to foreign companies. Such regulations required Beijing's approval for President Donald Trump's deal to maintain TikTok's availability in the US following its sale by Chinese parent company ByteDance.
In March, reports emerged that Manus' two co-founders were prevented from leaving China amid a regulatory review of Meta's acquisition.
A Meta spokesperson told the BBC at that time,
"The outstanding team at Manus is now deeply integrated into Meta, running, improving and growing the Manus service and will continue to make it available to the millions of people who enjoy it."
Should the acquisition be required to be unwound, it may present significant challenges for Meta.
This situation arises amid broader tensions between the US and China, which have heavily influenced the technology industry.
On Friday, the White House announced plans to collaborate more closely with US AI firms to counter
"industrial-scale campaigns"aimed at stealing technological advances. The statement noted that new information indicated
"foreign entities, principally based in China"were replicating US AI models.
A representative of China's US embassy in Washington DC responded by criticizing
"the unjustified suppression of Chinese companies by the US"in reaction to the White House memo. The representative added,
"China is not only the world's factory but is also becoming the world's innovation lab."
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