China prohibits Meta’s $2 billion purchase of AI firm Manus.

China’s state planner has banned foreign acquisition of the Chinese artificial intelligence startup Manus, instructing all parties involved to cancel the deal, according to the National Development and Reform Commission on Monday.

This follows Meta’s over $2 billion bid to acquire Manus in 2025, which sparked investigations into foreign investments in Chinese technology firms and exports, amid fears that the deal could encourage other startups to relocate advanced technology abroad.

This comes as reports emerged that China intends to limit leading technology companies, including top AI startups, from accepting US investments without government consent.
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According to a Bloomberg report, Chinese regulators, including the National Development and Reform Commission, have recently advised multiple private tech firms to decline US investment in funding rounds unless they receive explicit approval, the report stated.

AI startups Moonshot AI and StepFun were among those companies that received this guidance, according to the report. Regulators have also implemented similar restrictions for ByteDance, the parent company of TikTok, disallowing the company from facilitating secondary share sales to US investors without governmental permission, it added.

The measures are designed to prevent US investors from acquiring stakes in sensitive technologies related to China’s national security, Bloomberg reported.

NDRC, StepFun, ByteDance, Meta, and Moonshot AI did not immediately respond to requests for comment from Reuters.

For years, US capital has significantly impacted China’s technology landscape, from venture investments made by firms like Sequoia Capital and Benchmark to strong operational ties with companies such as Apple, Microsoft, and Tesla.

American pension funds and endowments have also been key supporters of China-focused venture funds, fueling growth in internet platforms, electric vehicles, and AI.

Earlier this year, Washington imposed its own restrictions, limiting US investment in certain Chinese AI, semiconductor, and quantum firms, citing security concerns.