China blocks Meta Corporation's $2 billion deal

The National Development and Reform Commission of China has blocked the acquisition of the AI startup Manus by Meta Corporation. An official demand to cancel the deal, valued at $2 billion, has been sent to both parties. Ixbt.com reports on this.

The regulator explained its decision by the necessity to establish control over the export of technologies.

Although the Manus startup is currently registered in Singapore, it was originally founded and developed in China. According to the country's legislation, the sale of technologies created by companies with Chinese founders to foreign entities requires Beijing's approval.

A similar mechanism was previously applied to the TikTok network.

Meta representatives stated that the deal fully complies with existing laws and expressed hope that the situation would be resolved through dialogue. However, it was revealed in March that restrictions had been placed on the Manus founders' departure from China.

Since the startup is currently integrated into Meta's infrastructure, canceling the deal is considered a technically complex process.

The Manus project is known as an autonomous agent capable of independently performing multi-stage tasks without constant user prompts. This ban occurred at a time of intensifying competition in the field of artificial intelligence between the US and China.

Last week, the White House announced that it would strengthen cooperation with domestic companies to counter foreign developments.