China Cancels Meta’s $2 Billion Manus Deal

China blocked Meta’s $2 billion acquisition of AI startup Manus, escalating tensions in the global tech race and disrupting the burgeoning agentic AI sector. The decision comes weeks before a critical US-China summit between President Trump and President Xi Jinping, adding geopolitical strain to already fraught relations. Manus, a Chinese AI firm specializing in autonomous agents, was poised to bolster Meta’s AI capabilities, but regulatory intervention halted the deal abruptly. Analysts warn the move signals Beijing’s tightening grip on domestic AI innovation, prioritizing national control over foreign investment in strategic technologies. The cancellation may deter future cross-border tech deals, reshaping global AI collaboration amid rising protectionism and competitive tech policies.