China’s decision to block the $2 billion Meta-Manus deal shows how far Washington and Beijing are drifting apart over AI

China's top macroeconomic regulator, the National Development and Reform Commission (NDRC), abruptly blocked Meta's acquisition of AI startup Manus, a deal reportedly valued at around $2 billion. In a brief Monday posting, the NDRC stated it had "decided to block the foreign acquisition of the Manus project and require the parties to unwind the deal." This direct intervention marks one of the most aggressive moves by Beijing to prevent US tech giants from acquiring Chinese AI assets.

The block creates significant complications for Meta. Manus employees have already integrated into Meta's AI team, and backers including Tencent and HongShan Capital have reportedly received their payments, making an "unwind" legally and operationally complex. A Meta spokesperson stated the "transaction complied fully with applicable law" and expressed hope for an "appropriate resolution." This event underscores the accelerating decoupling of US and Chinese AI ecosystems, as both nations prioritize retaining control over strategic technologies and preventing IP leakage.