China has blocked the proposed $2 billion acquisition of artificial intelligence startup Manus by Meta Platforms, marking a significant development in the ongoing global competition over advanced technologies.

The decision was issued by China’s top economic planning authority, which ordered the transaction to be withdrawn, effectively preventing the transfer of ownership. Officials cited concerns related to national security and the protection of strategic technological assets, particularly in the rapidly evolving field of artificial intelligence.

Manus, an AI startup founded by Chinese engineers and later relocated to Singapore, has gained attention for developing autonomous AI systems capable of performing complex tasks with minimal human input. The company’s technology was viewed as highly valuable for Meta’s ambitions to expand its artificial intelligence capabilities across its platforms.

The move reflects Beijing’s growing efforts to regulate foreign involvement in its domestic technology sector. Authorities have increasingly sought to prevent the transfer of intellectual property and technical expertise to overseas companies, particularly amid heightened competition with the United States in areas such as AI, semiconductors, and advanced computing.

Despite Manus shifting parts of its operations abroad, Chinese regulators maintained jurisdiction over the deal, signaling a broader interpretation of control over companies with Chinese origins. The decision also highlights a stricter approach to cross-border mergers and acquisitions involving sensitive technologies.

Meta stated that the acquisition complied with applicable regulations and expressed hope for a resolution, but the ruling represents a setback for its strategy to strengthen its position in the global AI race. The company had intended to integrate Manus’s capabilities into its ecosystem to accelerate innovation in automation and intelligent systems.

Analysts note that the development is part of a broader geopolitical trend in which governments are increasingly intervening in technology transactions. Artificial intelligence, in particular, has emerged as a key area of strategic importance, with countries seeking to safeguard domestic advancements while limiting foreign access.

The blocked deal is likely to have wider implications for the technology industry, raising uncertainty around future international collaborations and investments. It also signals that regulatory scrutiny of AI-related transactions is expected to intensify as global competition for technological leadership continues.