The Chinese National Development and Reform Commission has ordered both parties to withdraw the transaction. Photograph: Samuel Boivin/NurPhoto/ShutterstockView image in fullscreenThe Chinese National Development and Reform Commission has ordered both parties to withdraw the transaction. Photograph: Samuel Boivin/NurPhoto/ShutterstockChina blocks $2bn Meta takeover of AI agent developer ManusBeijing says domestic tech companies must seek explicit government approval for accepting US investment Business live – latest updates China has blocked Meta’s $2bn (£1.5bn) acquisition of an AI startup as it cracks down on US investments in domestic tech companies.Mark Zuckerberg’s Meta, the owner of Facebook, Instagram and WhatsApp, announced the acquisition of Manus, a developer of autonomous AI agents, in December.However, the Chinese National Development and Reform Commission (NDRC) said on Monday it had cancelled the takeover.In a statement, China’s top economic planning body said that it will “prohibit the foreign investment in the acquisition of the Manus project” and “requires the parties involved to withdraw the acquisition transaction”.Bloomberg reported last week that Chinese regulators are planning to block tech firms, including leading AI startups, from accepting US investment without government approval.Several private firms have reportedly been warned in recent weeks that they should reject US funding unless it receives explicit approval from Beijing, in a policy move triggered by the Manus deal.Manus, which launched in Beijing but is now based in Singapore, described the deal as “validation of our pioneering work with general AI agents”.AI agents are designed to carry out multiple tasks – such as planning holidays, handling customer queries or drafting research presentations – without human intervention and are important products for tech executives touting the labour-saving possibilities of the technology.Meta, which is pouring billions of dollars into its AI drive, said the deal would bring a “leading agent to billions of people and unlock opportunities for businesses across our products”.China and the US are the leading AI superpowers, with all of the top 20 best-performing models produced by a developer from one of those countries.The US president, Donald Trump, claimed in January that “we’re leading China by a tremendous amount” in what the White House has billed as a straight race between Beijing and Washington for AI dominance.Explore more on these topicsChinaChinese economyTechnology sectorAsia PacificMergers, acquisitions and fundingAI (artificial intelligence)ComputingShareReuse this content