Chinese authorities have halted the planned acquisition of the startup Manus by the US company Meta Platforms. The deal, worth up to $2.5 billion, would have allowed the company to acquire advanced technology for so-called AI agents, systems capable of performing complex tasks autonomously with minimal user supervision. But Beijing's decision shows that China wants to control even technologies that, while formally moved abroad, were created by Chinese engineers.

Manus: a Chinese startup with global ambitions

Startup Manus was developed by Butterfly Effect, a company originally based in China. In early 2025, it launched its eponymous AI agent, which quickly gained popularity among users and investors from China and Silicon Valley.

In July, the company moved its headquarters to Singapore and ceased most of its activities in China. The move was intended to make it easier for the company to raise foreign capital and establish partnerships with global technology firms. At the end of 2025, Manus reported recurring annual revenue of $100 million, with revenue growing at a rate of 20 percent per month.

Meta wanted to incorporate the technology into both Facebook and WhatsApp

Meta announced its intention to buy Manus in December 2025. It planned to integrate the technology into its products, including Facebook, Instagram and WhatsApp. It also wanted to keep Manus as a standalone business.

China's National Development and Reform Commission (NDRC) has launched a security review, arguing that the deal could lead to the transfer of sensitive data and the transfer of strategic technology to foreign control. After several months of review, it finally blocked the acquisition.

The end of the „Singapore Strategy“

Beijing's decision has significantly impacted the strategy of many Chinese startups that have been moving their headquarters to Singapore to avoid regulatory restrictions and gain access to Western investors.

Following the intervention of the Chinese authorities, some companies have begun to rethink plans for foreign expansion, selling to strategic partners or raising capital from the US and Europe. Investors and founders alike are realizing that simply moving headquarters may no longer be enough to extricate a company from Chinese jurisdiction.

The technological rivalry between the US and China is growing

The United States and China consider artificial intelligence to be a key technology with economic and security significance. In recent years, Washington has imposed sanctions against Huawei and tightened export restrictions on advanced semiconductors. Beijing, on the other hand, is strengthening its control over domestic technology firms and limiting the transfer of sensitive technology abroad.

The blocking of the Meta-Manus transaction is further evidence that technological cooperation between the world's two largest economies is becoming increasingly difficult.

Stricter oversight of Chinese AI firms

The move by Chinese regulators suggests that Beijing intends to assert jurisdiction over any strategically important company whose technology, talent or operations originate in China. This may severely limit the options for startups looking to attract Western capital or expand through international acquisitions.

The developments around Manus also confirm that the field of artificial intelligence is becoming one of the main battlegrounds in the geopolitical rivalry between China and the United States.

deeplearning.ai/gnews.cz - GH