China blocks Meta’s acquisition of AI startup Manus

China said Monday it has decided to block Meta‘s $2 billion acquisition of Manus, a Singaporean AI startup with Chinese roots.

China’s state planner, the National Development and Reform Commission, said it made the decision to prohibit foreign investment in Manus in accordance with laws and regulations, and has asked the parties involved to withdraw the acquisition transaction.

The deal had attracted scrutiny from both China and Washington, as lawmakers in the U.S. have prohibited American investors from backing Chinese AI companies directly. Meanwhile, Beijing has increased efforts to discourage Chinese AI founders from moving business offshore.

— CNBC’s Anniek Bao contributed to this story.

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