China has blocked Meta Platforms' proposed $2 billion acquisition of Manus, a Singapore-headquartered artificial intelligence startup with deep Chinese roots, according to a report citing Chinese state media.
The National Development and Reform Commission (NDRC) and other regulatory bodies cited national security and data sovereignty concerns as the primary drivers behind the decision.
The rejection marks a significant escalation in Beijing's scrutiny of cross-border AI transactions.
Manus, which has been developing advanced multimodal AI models, was viewed as a key talent and technology bridge between Chinese researchers and Western capital.
By blocking the deal, China is signaling that it will not easily allow its top AI assets and intellectual property to flow to foreign tech giants, even through offshore structures.
For Meta, the blocked acquisition removes a potential shortcut to acquiring cutting-edge generative AI capabilities and a pool of specialized engineers.