China Blocks Meta's $2 Billion Manus Deal - Beijing Halts Agentic AI Startup Sale

China has officially blocked Meta's planned $2 billion acquisition of Manus, an agentic AI startup that became one of the most prominent platforms in the space over the past year. The National Development and Reform Commission (NDRC) ordered the deal's cancellation after months of regulatory review, effectively killing one of the largest AI transactions of 2024. Manus was originally founded in China before restructuring as a Singapore-based company. The startup developed significant traction in the agentic AI market, which focuses on AI systems that can autonomously perform tasks and make decisions. Meta had agreed to acquire the firm earlier this year in what would have been a major consolidation move in the emerging agentic AI sector. Beijing's decision stems from updated investment rules that prioritise protecting Chinese AI technology from foreign acquisition. Regulators specifically flagged concerns about valuable Chinese AI capabilities being absorbed by an American tech giant. The NDRC's public statement was notably brief, but the underlying message signals a clear shift in how China approaches AI-related deals involving domestic companies. The blocked acquisition represents more than just a failed business transaction. Early warning signs emerged last month when two of Manus's co-founders were reportedly prevented from leaving China whilst the regulatory review continued. For Meta, this marks a rare instance of a major deal being pulled at the final stages. More broadly, the decision demonstrates that Beijing now views AI talent and technology outflows as matters of strategic national security rather than purely commercial concerns.