China blocks Meta's bid to buy Manus AI startup

South China Morning Post reported that the NDRC had ordered leading AI firms to stop accepting American capital to prevent sensitive AI breakthroughs from falling into US hands.

China's National Development and Reform Commission ordered Meta Platforms to cancel its planned acquisition of Manus immediately, following a months-long review for potential export-control and national-security concerns.

The White House issued an urgent directive to government agencies to explore measures stopping Chinese entities from funding or copying American AI technology, as part of broader efforts to curb China’s AI and semiconductor development.

Previous reports cited by the article claimed Manus co-founders were summoned to meetings with Chinese officials in March 2025 and have since been barred from leaving the country.

The startup began moving its operations to Singapore and shut down its Chinese social media presence, actions Beijing regulators reportedly viewed as a potential 'technology leakage'.

Manus became a tech sensation in early 2025 after releasing what it described as the world's first general AI agent, a software capable of completing complex tasks on a user's behalf. The company is officially registered in Singapore but has roots in mainland China.

China has tightened its grip on technology exports since 2020, specifically targeting algorithms.