China proposes blocking US company Metas AI acquisition plans

China’s National Development and Reform Commission (NDRC) has announced that it is blocking a foreign acquisition of Manus, an artificial intelligence startup based in Singapore with ties to China. The decision was made in accordance with Chinese laws and regulations.

The NDRC did not specify the grounds for its decision, but it appears to be related to concerns over US acquisitions of Chinese AI talent and intellectual property. This move comes amid intensifying geopolitical rivalry between China and the US over artificial intelligence technology.

Manus provides general-purpose AI agents designed to carry out complex tasks with minimal human intervention. The company had announced plans to expand its offerings across Meta’s platforms after being acquired by the California-based tech giant in December. However, China had previously expressed concerns about the deal, stating that it would investigate whether the acquisition was consistent with its laws and regulations.

As part of the planned acquisition, Manus had agreed to discontinue its services and operations in China and transfer ownership interests to Meta. The company had also relocated its operations to Singapore, allowing its parent company to reincorporate and bypass certain restrictions on Chinese AI firms.

The NDRC’s decision highlights China’s increasing scrutiny of investment in domestic startups developing frontier technologies from the US. A White House spokesperson has stated that the Trump administration will continue defending America’s leading technology sector against foreign interference.

Source: Al Jazeera