China kills Meta’s acquisition of Manus as US-China AI rivalry deepens

In a significant move reflecting the escalating tensions in the tech sector, China has blocked Meta's acquisition of the AI startup Manus, which was established by Chinese entrepreneurs. This decision underscores the growing challenges faced by U.S. and Chinese tech firms in securing and maintaining cross-border deals, as both governments increasingly adopt stricter stances amid the intensifying rivalry in artificial intelligence. On April 27, Chinese authorities formally instructed Meta to unwind its $2 billion acquisition of Manus, citing national security concerns as the rationale behind the ban on foreign investment in the company. The acquisition had been under scrutiny for several months, with regulators launching a review in January 2026. During this period, the two co-founders of Manus were restricted from leaving China, highlighting the seriousness of the investigation, as reported by The Wall Street Journal. Manus gained attention in March 2025 with the introduction of its innovative “general AI agent,” a tool designed to assist users in various tasks, such as finding real estate or booking travel arrangements. The Manus AI agent operates as an “agentic wrapper,” utilizing an underlying AI model, specifically Anthropic’s Claude 3.7 Sonnet, to execute user requests effectively. Notably, Manus employs multiple AI agents to enhance its functionality, including a planner agent for task assignment and an executor agent capable of browsing websites, creating spreadsheets, utilizing various software tools, and even programming new applications. This technological advancement quickly captured the interest of Silicon Valley, particularly Meta, as CEO Mark Zuckerberg launched a significant initiative in 2025 to develop “personal AI superintelligence for everyone.” Following the acquisition, Meta began to integrate the Manus AI agent into its offerings, enhancing services like Meta’s Ads Manager, which is crucial for advertisers to manage campaigns across its platforms, including Facebook, Instagram, Messenger, and WhatsApp.