China has blocked US tech giant Meta’s attempt to acquire the AI company Manus, founded by Chinese entrepreneurs. This move highlights the intensifying battle between US and Chinese tech companies in the field of artificial intelligence.

The Chinese government formally demanded that Meta unwind the acquisition on April 27, citing national security concerns as the reason for banning foreign investment in Manus. The deal, worth $2 billion, had been under scrutiny since January 2026 when Chinese regulators began their investigation and instructed Manus' co-founders to remain in China during the review.

Manus quickly gained attention with its 'general AI agent,' designed to handle tasks like booking travel or searching for homes. This AI solution is a layer that wraps around an underlying model, such as Anthropic’s Claude 3.7 Sonnet, enabling it to carry out user requests autonomously.

Despite the setback, Meta has already integrated Manus’ AI agent into its services. For example, it now features in Meta's Ads Manager, allowing advertisers to craft and monitor ad campaigns across platforms like Facebook and Instagram. As the US-China AI rivalry deepens, this acquisition block could signal a shift towards more stringent scrutiny of cross-border tech deals.