Bejing tightens scrutiny of synthetic intelligence business amid intensifying geopolitical rivalry with the US over the expertise.
Printed On 27 Apr 2026
China has stated it’s blocking tech big Meta from an acquisition of synthetic intelligence (AI) startup Manus, tightening scrutiny of funding in home startups creating frontier applied sciences from the US.
China’s Nationwide Growth and Reform Fee (NDRC) stated on Monday that it was prohibiting the overseas acquisition of Manus, with out particularly naming Meta.
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The transfer highlights Beijing’s elevated concern over US acquisitions of Chinese language AI expertise and mental property, as Washington tries to restrict Chinese language tech companies’ entry to superior US chips.
It was not instantly clear on what grounds China was looking for the annulment of a deal involving a Singapore-based firm and the way, if in any respect, a accomplished acquisition transaction could be unwound.
Manus, which has Chinese language roots however is predicated in Singapore, offers general-purpose AI brokers designed to hold out complicated duties with minimal human intervention.
The decision to annul the deal was made by the fee in accordance with Chinese language legal guidelines and rules, the NDRC’s assertion stated.
California-based Meta stated in response to the assertion: “The transaction complied totally with relevant regulation. We anticipate an acceptable decision to the inquiry.”
A White Home spokesperson stated in an announcement that the Trump administration “will proceed defending America’s main and revolutionary expertise sector in opposition to undue overseas interference of any kind”.
Meta announced in December that it was buying Manus. It’s a uncommon case of a serious US tech group shopping for an AI firm with robust hyperlinks to China. The deal was forecasted to assist increase AI choices throughout Meta’s platforms.
Meta had stated there could be “no persevering with Chinese language possession pursuits in Manus” and that Manus would discontinue its providers and operations in China.
However China stated in January that it will examine whether or not the acquisition could be in step with its legal guidelines and rules.
After a $75m fundraising spherical led by US enterprise agency Benchmark in Might 2025, Manus shut its China workplaces, shedding dozens of workers. It then moved its operations to Singapore.
This enabled Manus’s mother or father firm, Butterfly Impact, to reincorporate in Singapore and bypass US funding restrictions on Chinese language AI companies, in addition to Chinese language guidelines limiting home AI companies’ means to switch their IP and capital abroad.
The Chinese language bid to dam the deal comes weeks earlier than a deliberate mid-Might summit between US President Donald Trump and Chinese language President Xi Jinping in Beijing.
