Story perspectives

China blocks Meta's $2bn Manus acquisition.

4/28/2026

Summary

China blocks Meta

China’s National Development and Reform Commission blocked Meta Platforms’ $2 billion acquisition of AI startup Manus and ordered the deal withdrawn.
The commission said it prohibits foreign investment in Manus, a Singapore-incorporated firm founded in China.
Authorities barred co-founders Xiao Hong and Ji Yichao from leaving China during the review.
Meta said the deal complied with law, expects a resolution, and noted the block precedes President Donald Trump’s May visit to Beijing.

Summary

China Restricts AI

Regulators warned Moonshot AI and StepFun to reject U.S. funding unless approved, widening the foreign-capital clampdown.
Tencent Holdings, ZhenFund and Hongshan have been paid from the Manus unwind, evidencing the reversal.
The move attacks the “Singapore-washing” path Chinese AI startups used, raising offshore fundraising compliance hurdles.
Analysts say the case will deter Chinese AI founders from foreign partnerships as Beijing now vets tech origins and R&D sites.

History

Historical Context

The Foreign Investment Law, adopted 15 March 2019 and effective 1 January 2020, replaced three joint-venture statutes and created a negative list barring foreign capital in several strategic sectors, including AI. In its first year the NDRC screened 1,200 AI deals and rejected $2 billion, a precedent shaping Meta’s $2 billion Manus acquisition and Tencent-backed Moonshot AI.

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China blocks Meta

China’s National Development and Reform Commission blocked Meta Platforms’ $2 billion acquisition of AI startup Manus and ordered the deal withdrawn.
The commission said it prohibits foreign investment in Manus, a Singapore-incorporated firm founded in China.
Authorities barred co-founders Xiao Hong and Ji Yichao from leaving China during the review.
Meta said the deal complied with law, expects a resolution, and noted the block precedes President Donald Trump’s May visit to Beijing.

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