China blocks Manus acquisition: here's why

Context

In brief

• China blocks Meta's acquisition of Manus
• Operation worth 2 billion US dollars
• Manus is an autonomous artificial intelligence agent

Key facts

• What: Blocking of Manus acquisition
• When: April 28, 2026
• Where: China
• Who: National Development and Reform Commission of Beijing
• Amount: 2 billion US dollars

The action by Chinese authorities seems to be linked to what is known as 'Singapore Washing,' the trend of tech startups paving the way for foreign acquisitions or investments by moving their legal headquarters abroad. Yesterday, 08:33 Yesterday, 08:42 02:27 News broadcast at 07:00 on 28.04.2026: China's block on Meta's acquisition of the Manus platform RSI Info 28.04.2026, 07:00 Reuters Audio content By: Lorenzo Lamperti, RSI collaborator from Taiwan 'Don't sell the young crops.' In recent weeks, some Chinese analysts had used this expression to comment on Meta's acquisition of Manus. Translated: do not give away too early something that, if left to mature, could become much more valuable. This is the perspective behind China's decisive intervention in the most talked-about deal of recent months, at least in the field of artificial intelligence. The National Development and Reform Commission of Beijing announced that it will 'prohibit foreign investments in the acquisition of the Manus project' and 'require the parties involved to withdraw the transaction.' A few hours later, Meta confirmed the reversal of the acquisition announced in December, in a deal worth over two billion US dollars.

What is Manus?

Manus is owned by Butterfly Effect, a tech startup whose legal headquarters has been moved to Singapore. It is one of the most promising artificial intelligence systems in the world: Manus is not a 'simple' chatbot like ChatGPT or the Chinese Deepseek, but what is defined as an 'autonomous agent.' The platform is capable of managing complex activities such as building financial analysis tools, preparing advanced reports or business presentations, developing codes. All this in complete autonomy. Even the name in Latin, which means 'hand,' underscores the credentials of an 'artificial intelligence that acts' and that 'does not work with the user,' but 'for the user.'

The acquisition of Manus by Meta represents a significant case with profound implications. Meta, the company behind Facebook and Instagram, has long sought to expand its presence in the artificial intelligence market. With the purchase of Manus, the US giant led by Mark Zuckerberg was expected to give a turn to its business, radically expanding services for users and businesses. However, at the end of March, the two co-founders of Manus, Xiao Hong and Ji Yichao, were summoned to Beijing. Both would have been prevented from leaving the national territory during the review process of the deal, culminating in a report that speaks of a 'conspiratorial attempt' aimed at 'depriving China of an advanced technological base in artificial intelligence.' Hence the order to block the deal, with the request to withdraw the transaction.

The affair has several ramifications and reminded some of what happened in the autumn of 2020, when Beijing blocked at the last minute the stock market listing of Ant Group, the fintech arm of the digital giant Alibaba. In that case, it was the beginning of the campaign to rectify the Big Tech that led to a strategic reorientation of the activities of the Chinese giants. Now, China seems to want to secure also a sector that is becoming increasingly crucial, such as that of artificial intelligence, among the main ingredients of the menu of the contest with the United States.

Operational details

Implications for the tech market

The blocking of Manus' acquisition by China has significant implications for the global tech market. Beijing's decision to ban foreign investments in strategic sectors like artificial intelligence signals a shift in Chinese economic policy. This could influence the expansion strategies of major Western tech companies, which may need to revise their acquisition plans in China.

Impact on foreign investments

China is becoming increasingly protective of its advanced technologies. The phenomenon of 'Singapore Washing,' where companies move their legal headquarters abroad to facilitate foreign acquisitions or investments, is seen as a systemic risk. This could lead to greater regulation and control over foreign investments in critical sectors, such as artificial intelligence and fintech.

Consequences for Chinese startups

Chinese startups seeking to internationalize in strategic sectors will need to coordinate with political authorities. China is preparing stricter regulations to require government approval for U.S. investments in tech startups. This could slow down the internationalization process and make it harder for Chinese startups to attract foreign investments.

Comparison with similar situations

The Manus case reminds us of Ant Group, when Beijing blocked the IPO of Alibaba's fintech arm. At the time, it marked the beginning of a campaign to rectify Chinese Big Tech. Now, China seems to want to apply the same level of control to the artificial intelligence sector, which is at the center of tensions with the United States.

Future scenarios

If China continues to strengthen control over critical technologies, we could see an increase in commercial tensions with the United States. This could lead to a greater fragmentation of the global tech market, with significant consequences for companies and investors.

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Key points

What to do for tech companies

Tech companies operating in China or planning to invest in the country must be aware of the new rules and restrictions imposed by the Chinese government. It is crucial to closely monitor regulatory developments and consult legal experts to fully understand the implications of the new laws.

Concrete steps for startups

Startups looking to internationalize must carefully evaluate the sectors they operate in and ensure they comply with local regulations. It is important to coordinate with political authorities and obtain the necessary government approvals before proceeding with foreign acquisitions or investments.

Use support tools

To better understand the implications of the new regulations and plan their expansion strategies, companies can use tools such as the tax calculator and the permit comparator. These tools can help evaluate the available options and make informed decisions.

Conclusion

The blocking of Manus' acquisition by China represents an important signal for the global tech market. Companies and startups must be ready to adapt to the new regulations and coordinate with political authorities to avoid legal and financial problems. Using support tools and consulting legal experts can make a difference in the success of their expansion strategies.

Source: rsi.ch