China blocks Meta acquisition of AI startup Manas

Written by Chan Hohim, Canis Leung, Kelvin Chan

HONG KONG (AP) – China on Monday blocked U.S. tech giant Meta’s acquisition of artificial intelligence startup Manas, an unexpected move to back out of an agreement that apparently sparked Beijing’s concerns about the transfer of advanced technology.

China’s top planning body, the National Development and Reform Commission, said in a one-line statement that it prohibited any foreign takeover of Manus and called on all parties to withdraw from the deal. He did not specifically name Meta Platforms, which owns Facebook and Instagram.

Manus, which has Chinese roots but is based in Singapore, provides general-purpose AI agents that can autonomously perform advanced tasks such as app coding, market research, and creating quarterly budgets.

The decision was made by the commission’s Foreign Investment Security Review Working Mechanism Office in accordance with Chinese laws and regulations, the statement said. This comes after Chinese authorities announced earlier this year that they were considering the deal.

The commission did not elaborate on the reasons for the ban. The announcement comes less than a month after US President Donald Trump is scheduled to visit Beijing in May to meet with Chinese leader Xi Jinping.

Meta announced in December that it would acquire Manas, an unusual case in which a major U.S. tech group acquires an AI company with strong ties to China. The deal with Manas was expected to help Meta expand its AI offerings 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.

China’s Ministry of Commerce said at the time that companies involved in foreign investment, technology exports, data transfers and cross-border acquisitions must comply with Chinese law. Mr Mehta said most of Manus’ employees are based in Singapore.

Before the deal, Manas’ parent company was Singapore-based Butterfly Effect, but the AI ​​startup traces its roots to a similarly named Beijing-registered company founded several years ago.

Manas did not respond to requests for comment. The company’s website states that it is “currently part of Meta,” indicating that the deal has already been completed.

Meta said on Monday that the Manus transaction was “in full compliance with applicable law.”

The California-based company said in a statement that it “looks forward to an appropriate resolution to the investigation.”

Analysts said the decision is a sign that China’s Communist Party leadership is increasing its oversight of the AI ​​industry amid intensifying geopolitical competition with the United States over AI technology.