China doesn’t want Meta’s Mark Zuckerberg to buy Manus AI, here is why
Follow UsChina has told Meta Platforms to cancel its $2.5 billion deal with AI startup Manus over security concerns.
Officials say the company still has links to China, which could risk control of important technology.
The decision shows tighter rules on tech deals and rising global competition in AI.
China has stepped in to stop a major artificial intelligence deal. The country ordered Meta Platforms to unwind its 2.5 billion dollar purchase of the startup Manus. The decision was announced by the National Development and Reform Commission. Officials said it is based on national security concerns linked to cross-border technology transfers. Many industry watchers believe it also reflects rising tension between China and the United States over control of advanced AI tools. The current move from the Chinese governments clearly states that they are becoming more careful about foreign investment in important technology sectors, and political decisions can affect business deals in the global tech industry. These actions might slow things down, but they can also help protect a country’s national interests.
SurveyThe Chinese regulator said the deal must be reversed after a review found risks linked to foreign control of sensitive technology. Under Chinese law, investments that affect national security can be blocked or cancelled. Officials argued that Manus still has strong roots in China through its original entity, Beijing Butterfly Effect Technology.
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Manus created an AI agent that can do complex work like writing detailed reports and making presentation slides. The company started in China in 2022 but later moved much of its work to other countries. A Singapore-based entity took over global operations, and many employees were relocated there after foreign investment.
Meta completed the acquisition in late December, and soon after that the Chinese authorities opened an investigation. Reports said Manus co-founders Xiao Hong and Ji Yichao were asked to remain in China during the review process.
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Meta said the deal followed all legal requirements and expressed hope for a fair outcome. The company also stated that Manus would end its China operations and remove any local ownership links. However, the original Chinese entity has not yet been fully shut down.
Regulators appear concerned that similar moves could allow Chinese technology to leave the country without proper oversight. The case shows that Beijing is trying to stay in control of how AI develops, especially as competition around the world is getting stronger.
