China's state planner has blocked U.S. tech giant Meta’s purchase of Chinese artificial intelligence startup Manus on Monday, ordering the cancellation of the deal as Beijing and Washington continue to compete over dominance in frontier technologies, News.Az reports, citing Reuters.

The decision by China’s National Development and Reform Commission (NDRC) underscores Beijing’s determination to prevent AI talent and intellectual property from being acquired by U.S. companies, as Washington seeks to restrict China’s AI progress through export controls aimed at limiting access to advanced U.S. chips.

The move could also add tension to the planned mid-May summit in Beijing between U.S. President Donald Trump and Chinese President Xi Jinping.

California-based Meta, which owns Facebook, acquired Manus in December for more than $2 billion in an effort to strengthen its capabilities in AI agents—systems designed to perform complex tasks beyond traditional chatbots with minimal human input.

However, in March, Manus CEO Xiao Hong and chief scientist Ji Yichao were reportedly barred from leaving China while regulators reviewed the deal, according to sources familiar with the matter.

Manus gained attention early last year after Chinese state media and commentators described it as the country’s next DeepSeek, following the release of what it called the world’s first general AI agent.

Months later, Manus relocated its headquarters from China to Singapore, joining a broader trend of Chinese firms moving operations abroad to reduce exposure to escalating U.S.-China tensions.

Alfredo Montufar-Helu, managing director at Ankura China Advisors, said Beijing’s intervention reflects how artificial intelligence has become a central front in strategic competition between the world’s two largest economies, with restrictions expanding beyond semiconductors into AI technologies.

“China is saying we will prevent foreign acquisition of assets we consider important for national security — and AI is now clearly one of them,” he said, adding that the decision also signals that relocating overseas may not protect firms from regulatory scrutiny.

News.Az 

By Nijat Babayev