China Bans Meta’s Acquisition of Manus on National Security Grounds

China has banned Meta Platforms’ acquisition of artificial-intelligence startup Manus on national security grounds and ordered that the $2.5 billion deal be unwound. China’s National Development and Reform Commission, which has the authority to review foreign investments, said that it has banned the acquisition and ordered it to be rescinded. “The transaction complied fully with applicable law,” a Meta representative said in an email statement. “We anticipate an appropriate resolution to the inquiry.” The development signals that Beijing is intent on limiting foreign involvement in its vibrant tech sector and keeping valuable intellectual property from leaving the country at a time when the U.S. and China are locked in an intensifying technology race. Both countries have tightened export controls, restricted the exchange of tech professionals, and curbed cross-border investment.