Chinese authorities have ordered Meta Platforms to abandon the acquisition of the startup Manus, citing national security legislation.

Chinese authorities have forced the American giant Meta Platforms to abandon the acquisition of the artificial intelligence startup Manus, in an action that reflects the intensification of control over foreign investments in sensitive technologies. The National Development and Reform Commission invoked national security legislation and requested the withdrawal of the transaction. This measure underscores Beijing's strategy to prevent American companies from obtaining talent and intellectual property in the AI field. Manus, controlled by Butterfly Effect, had already moved its operations to Singapore to avoid restrictions, and employees were relocated to Meta's offices in Singapore. Although it is unclear on what legal basis China is relying to cancel the transaction, analysts believe this marks an expansion of Beijing's jurisdiction over cross-border transactions. The case arises in the context of technological tensions between the US and China, with mutual restrictions on advanced technologies. The founders of Manus have been summoned to Beijing for discussions with the authorities and are not allowed to leave the country. The intervention of Chinese authorities significantly complicates the completion of the acquisition, which aimed to strengthen the development of AI agencies by Meta.