China blocks $2 billion Meta deal with sudden crackdown

China has blocked Meta Platforms Inc’s planned acquisition. $2 billion valuation of agent AI startup Manus, and abruptly halted a deal that had drawn attention to potential technology transfers to the United States.

In a brief statement issued Monday, the National Development and Reform Commission (NDRC) said it had decided to ban foreign investment in the company in accordance with existing laws and regulations. The agency did not provide further details.

The NDRC’s office to ‌review foreign investment security said it would “prohibit foreign investment in Manus in accordance with laws and regulations and require the parties involved to withdraw the acquisition transaction.”

The move effectively cancels high-profile transactions, which have long been seen as a strategic expansion of Meta’s artificial intelligence capabilities, particularly in the emerging area of ​​agent AI systems.

READ ALSO: Google will invest around $40 billion in AI startup Anthropic

Regulatory concerns have grown in China over the possible exit of sensitive technology, especially as competition between the US and China intensifies in the development of advanced AI.

The decision underscores Beijing’s increasingly stringent stance on foreign acquisitions involving domestic technology companies, particularly in sectors deemed critical to national security and long-term innovation.

Neither Meta nor Manus immediately responded publicly to the development at the time of filing this report.

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