Why Is China Blocking Meta’s Acquisition of Manus?

China blocked Meta’s $2 billion acquisition of AI startup Manus, reversing a deal critics argued enabled unauthorized technology transfer to the U.S. The decision marks a rare intervention in cross-border tech mergers. The move targets Manus, a Chinese-founded agentic AI firm with dual operations in Beijing and Silicon Valley, raising concerns over sensitive IP leakage to foreign entities. Announced in April 2026, the blockage follows months of regulatory scrutiny, signaling Beijing’s tightening grip on AI and quantum-adjacent tech exports amid U.S.-China tensions. Officials cited national security risks, emphasizing Manus’s role in developing autonomous AI agents with potential military-civilian dual-use applications. The rejection underscores China’s broader strategy to curb foreign control over domestic AI innovations, even as it seeks to accelerate indigenous quantum and AI advancements.