Beijing is increasing its oversight of the artificial intelligence industry as geopolitical competition with the United States intensifies over technology.
Published April 27, 2026
China has blocked tech giant Meta’s acquisition of artificial intelligence (AI) startup Manas and announced it is stepping up oversight of investments in domestic startups developing cutting-edge American technology.
China’s National Development and Reform Commission (NDRC) announced on Monday that it would ban foreign acquisition of Manus, without specifically naming the meta.
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The move underscores Beijing’s growing concerns about the U.S. acquisition of Chinese AI talent and intellectual property, as the U.S. government seeks to restrict Chinese tech companies’ access to advanced American chips.
It is not immediately clear on what basis China is seeking to cancel transactions involving Singapore-based companies, or how completed acquisition deals, if any, will be canceled.
Manus, which has roots in China and is based in Singapore, offers general-purpose AI agents designed to perform complex tasks with minimal human intervention.
The NDRC statement said the call to abandon the agreement was made by the commission in accordance with Chinese laws and regulations.
In response to the statement, California-based Meta said: “The transaction fully complied with applicable law. We look forward to an appropriate resolution to the investigation.”
A White House spokesperson said in a statement that the Trump administration “continues to protect America’s key innovative technology sectors from any unwarranted foreign interference.”
Meta announced the acquisition of Manus in December. It’s unusual for a major U.S. tech group to buy an AI company with strong ties to China. The deal was expected to help Meta expand its AI services across its platforms.
Meta said that “there is no continued Chinese ownership of Manus” and that Manus would discontinue its services and operations in China.
However, China announced in January that it would investigate whether the acquisition complies with its laws and regulations.
After a $75 million funding round led by US venture firm Benchmark in May 2025, Manas closed its China office and laid off dozens of employees. We then moved our operations to Singapore.
This allowed Manas’ parent company Butterfly Effect to reincorporate in Singapore and circumvent U.S. investment restrictions on Chinese AI companies as well as Chinese rules restricting domestic AI companies from transferring intellectual property and capital overseas.
China’s move to block the deal comes weeks before a summit between US President Donald Trump and Chinese President Xi Jinping is scheduled for mid-May in Beijing.
