China's National Development and Reform Commission has killed Meta's $2 billion acquisition of Manus. The deal, announced in late 2025 and awaiting regulatory approval, would have given Meta access to Manus's autonomous AI agent technology and team. Manus claimed to have built the world's first general AI agent. Founded by Xiao Hong and Ji Yichao, the startup builds at the application layer, creating autonomous agents rather than foundation models. For Meta, Manus was a fast path to agent capabilities, a strategy mirrored internally by internal data collection initiatives that capture keystrokes to train AI models. Beijing said no. The NDRC's decision follows a simple logic: keep Chinese AI talent and IP at home. It's the same approach that let DeepSeek flourish without foreign interference. China wants to control both layers, the foundation models where DeepSeek operates and the application layer where Manus plays. Now the walls go both directions. CFIUS forced TikTok's parent to divest. China blocks deals the other way. For companies looking to buy their way into AI agent tech, money alone isn't enough anymore. Regulatory approval is the new currency, and neither country is spending it freely.
China Kills Meta's $2B Deal for AI Agent Startup Manus
China's National Development and Reform Commission has blocked Meta's $2 billion acquisition of Chinese AI startup Manus, a deal announced in late 2025. Beijing's decision to cancel the acquisition reflects its policy of keeping AI talent and intellectual property domestic, as both China and the U.S. increasingly restrict cross-border technology transactions.
