China Blocks Meta’s $2 Billion Acquisition of AI Firm Manus

China blocked Meta’s $2 billion acquisition of AI startup Manus, citing national security concerns over technology leakage to the U.S. The decision unwinds a deal that had faced criticism since its announcement. The move marks a rare intervention by Chinese regulators in a high-profile foreign acquisition, signaling stricter controls on AI and quantum-adjacent tech transfers amid rising U.S.-China tensions. Manus specializes in agentic AI, a field with potential quantum computing applications, making its technology strategically sensitive for both nations’ AI and defense advancements. Meta, which sought Manus to bolster its AI capabilities, now faces setbacks in its global AI expansion strategy, particularly in China’s tightly regulated tech sector. The blockade underscores China’s growing assertiveness in protecting domestic AI innovation, mirroring U.S. restrictions on Chinese tech investments in critical sectors.