‘This project fully complies with the applicable law,’ said Meta’s statement.
China blocked Meta’s $2bn acquisition of AI startup Manus. In a brief statement, the National Development and Reform Commission (NDRC) said the decision to ban foreign investment in Manus was made in accordance with Chinese laws. It asked the parties to withdraw from their seizure.
In a statement to SiliconRepublic.com, a Meta spokesperson said: “This operation fully complied with applicable law. We await an appropriate decision regarding the investigation.” Meta did not confirm whether it would postpone the decision.
China’s decision prevents Meta’s big AI plans to play against its Big Tech rivals. The company has spent billions acquiring businesses, hiring expensive executives and realigning priorities. Last week, the owner of Facebook decided to cut 8,000 jobs in order to run “more efficiently” and “complete other investments” it is making.
The company, which has budgeted $135bn for spending this year, committed to buying Manus late last year, followed by the viral Moltbook platform in March for an undisclosed sum.
Manus employees and management have joined Meta, and investors including Tencent Holdings, ZhenFund and Hongshan have already received their money in the purchase, sources told Bloomberg.
A person familiar with the matter told the Financial Times that the NDRC’s decision was “difficult”, and that it had “a strong intention to stop further deals” like Manus’s.
“In fact, it is difficult to withdraw the agreement that has been made, so it is about verbal warnings about similar agreements and a strong structure before the Xi-Trump summit,” said the source. US President Donald Trump is expected to meet with his Chinese counterpart Xi Jinping next month.
Manus is headquartered in Singapore, but has a Chinese parent company called Butterfly Effect Technology. Meta acquired the company after a $75 million round of funding last April that was valued at $500m.
As per the now-disputed purchase agreement, Meta can use and sell the Manus service, and bundle it with its products. However, Manus will still be able to sell subscriptions through its app and website.
In February, the startup launched ‘Manus Agents’, personal AI agents that work in the same way as the Austrian open source OpenClaw. Agents, released on Telegram that month, soon grew on WhatsApp. Meta did not confirm whether China’s decision will affect Manus Agents on WhatsApp.
China’s Ministry of Commerce launched an investigation shortly after the discovery to determine whether Meta violated the country’s laws on technology exports and outbound investment. According to regulations, the Chinese government needs to approve the export of certain technologies, including AI.
While Bloomberg recently reported that Chinese organizations have told the country’s key AI companies that they should reject funds from the US unless they are clearly approved.
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