China blocks Meta's $2B AI startup acquisition

China's National Development and Reform Commission (NDRC) has prohibited Meta's $2 billion acquisition of Manus, an AI startup founded by Chinese engineers. The decision forces Meta to unwind the deal entirely, potentially hindering its ambitions in the AI agents space. Manus employees had already relocated to Meta's Singapore offices, with founders taking on executive roles. The NDRC's intervention, citing unspecified laws and regulations, marks a significant move beyond typical US-China tensions and into the broader AI industry, raising questions about cross-border tech investments.