China proposes blocking US company Metas planned AI acquisition

China’s National Development and Reform Commission (NDRC) has announced that it is blocking a foreign acquisition of Manus, an artificial intelligence startup based in Singapore. The move aims to prohibit the acquisition by a tech giant from the United States.

According to the NDRC, the commission is enforcing Chinese laws and regulations regarding the acquisition. No specific details on the grounds for the annulment have been provided.

Manus provides general-purpose AI agents designed to carry out complex tasks with minimal human intervention. The company has Chinese roots but operates primarily in Singapore.

Meta, a California-based tech giant, had announced plans to acquire Manus in December. Meta stated that the transaction complied fully with applicable law and anticipated an appropriate resolution to the inquiry.

A White House spokesperson said that the Trump administration will continue defending America’s leading technology sector against foreign interference. The deal was forecasted to expand AI offerings across Meta’s platforms, but China has expressed concerns about the acquisition.

Manus had previously raised $75m in funding from a US venture firm and relocated its operations to Singapore to avoid restrictions on Chinese AI firms. The company’s parent, Butterfly Effect, reincorporated in Singapore after moving its offices out of China.

Source: Al Jazeera