China has formally blocked Meta Platforms from acquiring AI startup Manus, dealing a blow to what was shaping up to be one of the most closely watched cross-border deals in artificial intelligence.

In a statement, China’s top economic planner, the National Development and Reform Commission (NDRC), said it would prohibit foreign investment in the Manus project and directed all parties to terminate the transaction.

The move effectively ends Meta’s proposed purchase of the agentic AI firm, which had triggered scrutiny within Beijing soon after details of the deal emerged late last year.

The acquisition, reportedly nearing completion, had drawn attention from Chinese regulators concerned about the transfer of advanced AI capabilities to the US. Authorities began reviewing the transaction in January, when the Ministry of Commerce said it would examine whether the deal complied with rules governing technology exports, foreign investments and national security.

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Manus, which gained prominence in March 2025 after unveiling what it claimed was the world’s first general AI agent capable of autonomously completing tasks, was initially seen as a rare example of a Chinese-founded startup pursuing a global expansion strategy.

Critics within China raised concerns over the potential loss of strategically important intellectual property to a geopolitical rival, prompting a broader investigation into the deal.

Beijing’s intervention underscores a tightening grip over high-value AI assets, especially those with potential national security implications. China had expanded its technology export control framework in 2020 to include certain algorithms, giving regulators broader authority to block overseas transfers of sensitive technologies.

The Manus case also comes against the backdrop of escalating US-China tech tensions. Washington has introduced stricter curbs on American investment in Chinese AI and semiconductor companies, while Beijing has increasingly moved to ring-fence domestic innovation.

For Meta, the setback highlights long-standing friction with Chinese authorities. Facebook has been banned in mainland China since 2009 and efforts to build a presence in the market have repeatedly faced regulatory hurdles.