China Blocks Meta’s Manus Deal as AI Moves Deeper Into National Security

By Tahani Elghazaly
Published April 28, 2026

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China has ordered Meta to unwind its acquisition of the artificial intelligence startup Manus, marking a sharp escalation in Beijing’s scrutiny of sensitive AI assets with Chinese roots.

The deal is valued at more than $2 billion, according to Reuters. Chinese authorities moved against the transaction on national security grounds, despite Manus being headquartered in Singapore. The case has drawn attention because Beijing’s concern appears to focus not only on where the company is legally based, but also on the Chinese technological and human resources behind it.

Manus works in the field of agentic AI, a fast-growing category of artificial intelligence systems designed to carry out complex tasks more independently than traditional chatbots. The Associated Press reported that Manus has Chinese roots but is based in Singapore, and that China’s decision followed an earlier review of the transaction.

The order creates a more complicated challenge than blocking a future deal. Reuters reported that Meta is preparing to reverse the acquisition after China’s ban, with the process potentially involving assets, data, technology, and business arrangements that may already have been integrated. Chinese authorities have reportedly set a deadline of several weeks to restore Manus-related Chinese assets.

The decision sends a clear message to global technology investors: Chinese-founded or Chinese-linked companies may remain subject to Beijing’s national security review in strategic sectors, even if they are incorporated or headquartered abroad. In AI, Beijing appears increasingly focused on the origin of technology, talent, data, and intellectual property, not only on corporate registration.

For Meta, the move threatens a major step in its AI expansion strategy at a time when large technology companies are racing to build more capable tools and autonomous agents. For China, it signals a determination to prevent sensitive AI capabilities from moving under the control of a major U.S. technology company.

The case also reflects the wider rivalry between Washington and Beijing over advanced technology, from semiconductors to artificial intelligence. What might once have been treated as a private corporate acquisition is now being handled as a matter of national security, technological sovereignty, and geopolitical power.

The Meta-Manus deal is therefore more than a failed acquisition. It is a sign of how artificial intelligence is becoming a strategic asset in a world where technology, investment, and national security are increasingly tied together