China’s government has blocked Meta’s US$2 billion (A$2.78 billion) acquisition of artificial intelligence company Manus, amid escalating tensions between the United States and China over the AI industry.
The acquisition was announced in December. Manus, which produces AI agents, was initially based in China before relocating to Singapore last year.
The Chinese National Development and Reform Commission, which manages economic planning, said it would “prohibit foreign investment in Manus in accordance with laws and regulations, and requires the parties involved to withdraw the acquisition transaction.”
“The transaction complied fully with applicable law,” a Meta spokesperson told the BBC. “We anticipate an appropriate resolution to the inquiry.”
China’s Ministry of Commerce had said in January that it had begun investigating the acquisition.
Manus’ CEO Xiao Hong and top scientist Ji Yichao were summoned to Beijing in March for interviews with regulators, and were later prevented from exiting China, Reuters reported.
The decision to block the Manus purchase comes amid growing tension between the United States and China over the AI industry.
The U.S. State Department reportedly told diplomatic staff last week to speak to foreign counterparts about concerns that companies in adversary nations were training AI models using U.S. businesses’ intellectual property, per Reuters.
The White House also wrote in an internal memo last week that it would share more information with U.S. AI companies on actors involved with these alleged efforts.
Meta’s (NASDAQ: META) share price closed 0.5% higher at $678.62, and remained flat after-hours. Its market capitalisation is $1.72 trillion.
