China has decided to halt Meta Platforms’ acquisition of Manus, a startup specializing in agent AI, in a surprise move that ends a controversial deal that had raised concerns about the potential for technology leaks to the United States.
According to Bloomberg News, the National Development and Reform Commission (NDRC)—one of Beijing’s most powerful planning bodies—issued a brief statement on Monday ordering the cancellation of the deal, explaining that the decision was made “in accordance with applicable laws and regulations,” without providing further details.
A Blow to China’s AI Sector
This decision is expected to cast a shadow of concern over China’s rapidly growing AI sector, especially coming just weeks before a highly anticipated summit between US President Donald Trump and his Chinese counterpart, Xi Jinping.
The deal was initially hailed as a model for startups with global ambitions, but criticism later mounted, with warnings of losing strategic technology to a geopolitical rival. Technological Sovereignty Takes Precedence Over Legal Considerations
Manus was founded in China before relocating its headquarters and key staff to Singapore in 2025, raising questions about Beijing’s ability to intervene in a deal that fell outside its direct legal purview.
However, analysts believe the Chinese decision sends a clear message.
“What happened with Manus represents a watershed moment… The signal from Beijing is clear: the location of the legal entity is not the deciding factor, but rather effective control over the technology,” said Ke Yan, a technology analyst at DZT Research, according to Bloomberg News.
