Why China Blocked Meta’s $2 Billion Manus AI Deal — Even After It Closed

China has ordered Meta to unwind its reported $2 billion acquisition of AI startup Manus, months after the deal had already closed and the technology was integrated into Meta’s products.

In a statement, China’s National Development and Reform Commission (NDRC) said it would “prohibit foreign investment in the Manus acquisition” and require the parties involved to withdraw the transaction.

The move is unusual. Deals of this scale are typically blocked before completion, not after. But in this case, the timing is part of the message.

Protecting strategic technology

At the core of China’s decision is control.

Manus may be registered in Singapore, but its technology and early development came out of China. For regulators, that matters. Artificial intelligence is increasingly treated as strategic infrastructure, not just a commercial product.

Allowing the company to be acquired by a U.S. firm would effectively move that capability out of China’s reach. Blocking the deal—even after the fact—signals that this kind of transfer is no longer acceptable.

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