China Halts Meta’s $2 Billion AI Deal as Global Tech Tensions Escalate

China has blocked Meta from completing its $2 billion takeover of Manus, ordering both sides to withdraw the deal. The move, led by China’s state planner, follows months of scrutiny after the acquisition was announced in December. Authorities said the decision aligns with national laws, while investigations launched in January examined compliance with rules on technology transfer and overseas investment. The deal had drawn attention from both Beijing and Washington, reflecting rising tensions over artificial intelligence control. Manus, founded in China before moving to Singapore, develops advanced AI agents capable of tasks like coding and data analysis. The startup hit $100 million in annual recurring revenue within eight months of launching its product. China’s intervention has unsettled tech founders and investors, especially those using relocation strategies to avoid regulatory pressure.