Chinese authorities have prohibited Meta, the American technology group that manages social media platforms and develops artificial intelligence technologies, from completing a $2 billion deal to acquire Manus; a company founded by Chinese developers based in Singapore that develops digital agents capable of planning and executing multiple online tasks on behalf of users.

China halts the deal and prevents founders from traveling

The Financial Times revealed in its report that Chinese regulators rejected Meta’s acquisition and opened an investigation to ensure compliance with investment rules. The authorities also prevented Manus founders Xiao Hong and Ji Yichao from leaving China during the investigation, and are now preparing to lift the travel ban after Meta agreed to separate from the company and cancel the acquisition.

Manus returns to its former investors

A number of former investors are preparing to re-acquire Manus at the same price agreed upon with Meta, including Tencent, a Chinese technology group that operates in digital services, gaming, and artificial intelligence. It is expected to become the largest shareholder without owning a stake that would give it full control. Manus will continue to operate independently from Singapore, while its annual revenue is expected to exceed $300 million. The case shows that China is beginning to treat AI agent companies as an important technology that is difficult to allow to be transferred to a major American company.