{"id":27992,"date":"2026-04-28T10:07:00","date_gmt":"2026-04-28T10:07:00","guid":{"rendered":"https:\/\/finderica.com\/?p=27992"},"modified":"2026-04-28T10:07:00","modified_gmt":"2026-04-28T10:07:00","slug":"meta-manus-deal-block-draws-the-line-in-chinas-ai-race-with-the-u-s","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=27992","title":{"rendered":"Meta-Manus deal block draws the line in China&#8217;s AI race with the U.S."},"content":{"rendered":"<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108298087\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Manus was hailed by Chinese state media as the &#8220;next DeepSeek&#8221; soon after its launch in March 2025, months before the startup relocated to Singapore.<\/p>\n<p>Cheng Xin | Getty Images News | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>BEIJING \u2014 China&#8217;s decision to block U.S. tech giant <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-2\">Meta<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>&#8216;s $2 billion acquisition of artificial intelligence startup Manus is being seen by analysts as a warning to tech entrepreneurs.<\/p>\n<p>&#8220;Clearly after Manusgate, founders will know that if you start in China, you stay in China,&#8221; said Duncan Clark, an early advisor to Alibaba and chairman of consultancy firm BDA China.<\/p>\n<p>&#8220;We know the deal was already in trouble,&#8221; he said, &#8220;but this draconian development is on the more extreme side of the likely outcomes.&#8221;<\/p>\n<p>The timing is notable as it comes just days before Meta&#8217;s <a href=\"https:\/\/investor.atmeta.com\/investor-events\/default.aspx\" target=\"_blank\" rel=\"noopener\">scheduled earnings release<\/a> Wednesday local time, and less than a month before a planned visit by U.S. President Donald Trump to Beijing, during which trade and investment are expected to be discussed.<\/p>\n<p>The case also has direct implications for how businesses and investors position themselves in the U.S.-China tech race, as they navigate new risks around data, talent and intellectual property.<\/p>\n<p>For Chinese AI startups and U.S. investors, &#8220;the takeaway is that Singapore incorporation alone does not de-risk a deal from Chinese regulatory reach,&#8221; said Chris Pereira, president and CEO of consulting firm iMpact.<\/p>\n<p>&#8220;The broader implication,&#8221; he said, &#8220;is that a new front in the competition between the U.S. and China just opened up: talent itself.&#8221;<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108297667\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108297667\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000410994\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"><\/span><span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline0\"><\/a>What&#8217;s next for the deal<\/h2>\n<div class=\"group\">\n<p>Chinese authorities on Monday demanded that parties involved with the transaction withdraw, just months after launching a probe. It was not immediately clear how the unwinding process would proceed.<\/p>\n<p>Analysts said the decision could serve as a signal to founders about relocating sensitive technology overseas.<\/p>\n<p>&#8220;More than the models and AI agents, China is most concerned about whether China-origin strategically sensitive technologies \u2014 and the data and talent behind them \u2014 are effectively transferred offshore by corporate restructuring in Singapore,&#8221; said Winston Ma, adjunct professor at NYU School of Law.<\/p>\n<p>&#8220;The most complex aspect of this deal unwinding in the digital world is the data reversal,&#8221; Ma said, noting it&#8217;s much more challenging than reversing a physical goods transaction. <\/p>\n<p>A Meta spokesperson told CNBC that the transaction &#8220;complied fully with applicable law. We anticipate an appropriate resolution to the inquiry.&#8221; Manus did not immediately respond to a CNBC request for comment.<\/p>\n<p>&#8220;The practical reality is China has no leverage over Meta,&#8221; said Gary Dvorchak, Blueshirt Group managing director. The Facebook parent&#8217;s social media platforms are blocked in China by an internet firewall.<\/p>\n<p>Compared with its business in the European Union, Meta &#8220;makes nothing in China,&#8221; which means the company could ignore Beijing and proceed with the deal, Dvorchak said. But Beijing could disrupt Manus&#8217; operations, making the startup &#8220;essentially worthless to Meta if they merge,&#8221; he added. <\/p>\n<p>Meta disclosed that about 11% of its revenue in 2024 came from China, but <a href=\"https:\/\/d18rn0p25nwr6d.cloudfront.net\/CIK-0001326801\/b919eb05-86d9-4412-a8ff-308be1afb070.pdf\" target=\"_blank\" rel=\"noopener\">did not share those figures in 2025.<\/a> Europe accounted for more than 20% of Meta&#8217;s revenue in 2024 and 2025.<\/p>\n<p>While Meta noted in its 2025 annual report that it generates &#8220;meaningful revenue from a small number of resellers serving advertisers based in China,&#8221; it flagged that regulatory action, including U.S.-China tensions, could be a risk to its financial performance.<\/p>\n<\/div>\n<div data-test=\"WildCardEmbed\">\n<div class=\"WildcardEmbed-wrapper\">\n<style><![CDATA[\n\tdiv box-sizing: border-box;\n\t\n\t.noselect \n\t  -webkit-touch-callout: none; \/* iOS Safari *\/\n\t\t-webkit-user-select: none; \/* Safari *\/\n\t\t -khtml-user-select: none; \/* Konqueror HTML *\/\n\t\t   -moz-user-select: none; \/* Old versions of Firefox *\/\n\t\t\t-ms-user-select: none; \/* Internet Explorer\/Edge *\/\n\t\t\t\tuser-select: none; \/* Non-prefixed version, currently\n\t\t\t\t\t\t\t\t\t  supported by Chrome, Edge, Opera and Firefox *\/\n\t\n\t\n\t#tcc-wrapper width: 100%; max-width: 620px; min-width: 300px; cursor: pointer; display: block;\n\t\n\t.tcc-widget-content \n\t\tfont-family: Proxima Nova,Helvetica,Arial,sans-serif;\n\t\tfont-size: 16px;\n\t\tline-height: 24px;\n\t\tfont-weight: 400; \n\t\tcolor: #000;\n\t\tpadding: 16px 0 16px 0;\n\t\twidth: 100%;\n\t\theight: auto;\n\t\tborder-top: 1px solid #cccccc;\n\t\tborder-bottom: 1px solid #cccccc;\n\t\n\t\n\t.tcc-logo-col \n\t\tfloat: left;\n   \t\tmargin-right: 20px;\n\t\n\t\n\t.tcc-text-col \n\t\t\n\t\n\t\n\t.tcc-text a \n\t\tcolor: #0053CF !important;\n\t\ttext-decoration: none;\n\t\tfont-weight: 600; \n\t\n\t\n\t\n\n]]><\/style>\n<div id=\"tcc-wrapper\">\n<div class=\"tcc-widget-content\">\n<div class=\"tcc-logo-col\">\n\t\t\t<img decoding=\"async\" src=\"https:\/\/fm.cnbc.com\/applications\/cnbc.com\/resources\/styles\/skin\/special-reports\/the-china-connection\/tcc_widget_logo_2026.png\" width=\"278\" height=\"auto\">\n\t\t<\/div>\n<div class=\"tcc-text-col\">\n<div class=\"tcc-text\">Weekly analysis and insights from Asia&#8217;s largest economy in your inbox<br \/>\n\t\t\tSubscribe now<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Beijing&#8217;s move to block the acquisition appeared to be the first time China used foreign investment security review measures introduced in late 2020. <\/p>\n<p>Reflecting the weight of national security concerns, the rules established a dedicated office under the National Development and Reform Commission, China&#8217;s economic planning agency.<\/p>\n<p>The measures called on companies to seek approval for deals involving national security concerns before <a href=\"https:\/\/www.chinalawtranslate.com\/en\/foreigninvestmentsecurityreview\/\" target=\"_blank\" rel=\"noopener\">undertaking a foreign investment &#8220;directly or indirectly&#8221;<\/a> in mainland China. It is unclear whether Meta or Manus was required to do so and whether they communicated with regulators in advance. Reports indicate Beijing started reviewing the deal <a href=\"https:\/\/www.wsj.com\/tech\/ai\/meta-is-preparing-to-have-to-undo-its-manus-acquisition-after-china-ban-a4ffbefb\" target=\"_blank\" rel=\"noopener\">after it was announced<\/a>.<\/p>\n<p>&#8220;Manus&#8217;s <a href=\"https:\/\/www.globaltimes.cn\/page\/202604\/1359940.shtml\" target=\"_blank\" rel=\"noopener\">early R&amp;D was conducted in China<\/a> and &#8230; its core data originated there,&#8221; Chinese state-run tabloid Global Times said in an English-language version of its editorial overnight. <\/p>\n<p>&#8220;The key issue is not where the company is registered or where its team is currently based,&#8221; the editorial said. &#8220;Rather, it lies in the extent of its technological, talent and data links with China, &#8220;and whether the transaction could harm China&#8217;s industrial security and development interests.&#8221;<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline1\"><\/a>National attention<\/h2>\n<div class=\"group\">\n<p>As OpenAI&#8217;s ChatGPT took the world by storm in 2022, Washington tightened restrictions on chip exports to China, limiting access to a lucrative market for companies such as U.S. semiconductor giant Nvidia.<\/p>\n<p>China has pushed for tech self-sufficiency but has struggled to catch up. Breakthroughs from firms such as DeepSeek in January 2025 marked a moment of national pride.<\/p>\n<p>The open-sourced AI model did not rely on overseas-trained talent. DeepSeek also slashed AI usage costs \u2014 even as the U.S. restricted China&#8217;s access to high-end chips.<\/p>\n<p>On the heels of this enthusiasm, <a href=\"https:\/\/x.com\/ManusAI\/status\/1897294098945728752?s=20\" target=\"_blank\">Manus, on March 5, 2025<\/a>, released an AI tool that took the tech to the next level, from generating ideas to autonomously completing tasks.<\/p>\n<p>China&#8217;s state media hailed the launch as &#8220;<a href=\"https:\/\/news.cnr.cn\/native\/gd\/20250310\/t20250310_527095520.shtml\" target=\"_blank\" rel=\"noopener\">the next DeepSeek<\/a>.&#8221; Beijing&#8217;s municipal government was quick to highlight that Manus was created by a local tech company called <a href=\"https:\/\/fgw.beijing.gov.cn\/gzdt\/fgzs\/mtbdx\/bzwlxw\/202503\/t20250310_4030672.htm\" target=\"_blank\" rel=\"noopener\">Beijing Red Butterfly Technology.<\/a><\/p>\n<p>But <a href=\"https:\/\/www.scmp.com\/tech\/tech-trends\/article\/3317568\/chinese-firm-behind-ai-agent-manus-relocates-singapore-amid-us-chip-curbs\" target=\"_blank\" rel=\"noopener\">by July 2025<\/a>, Manus had restructured as a Singapore-headquartered company. In March, China outlined plans to transform its technology ambitions in its latest five-year development plan.<\/p>\n<\/div>\n<div class=\"group\">\n<p>China wants to &#8220;avoid situations where Chinese talent can boost U.S. firms in their AI rivalry,&#8221; BDA&#8217;s Clark said, noting that Chinese talent accounts for about half of the global AI engineering pool in biotech and many other sectors.<\/p>\n<p>&#8220;They don&#8217;t want to allow people or companies to bend or skirt the rules. We saw this with Ant Group&#8217;s aborted IPO, Didi jumping the gun with its U.S. listing then delisting. Now Manus.&#8221;<\/p>\n<p>There&#8217;s also a flip side.<\/p>\n<p>&#8220;The Manus case could further divide the AI ecosystem between China and [the] U.S., deterring overseas AI talents from returning to China,&#8221; said Dan Wang, a director on Eurasia Group&#8217;s China team.<\/p>\n<\/div>\n<div class=\"ArticleBody-googlePreferredSourceContainer\" data-module=\"GooglePreferredSource\" data-id=\"RegularArticle-GooglePreferredSource-5\">Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.cnbc.com\/2026\/04\/28\/china-blocks-meta-manus-deal-ai-tech-rivalry.html\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Manus was hailed by Chinese state media as the &#8220;next DeepSeek&#8221; soon after its launch in March 2025, months before the startup relocated to Singapore. Cheng Xin | Getty Images News | Getty Images BEIJING \u2014 China&#8217;s decision to block U.S. tech giant Meta&#8216;s $2 billion acquisition of artificial intelligence startup Manus is being seen<\/p>\n","protected":false},"author":1,"featured_media":27993,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[1818,2013,1236,5081,720,10248,3749,272],"class_list":{"0":"post-27992","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-block","9":"tag-chinas","10":"tag-deal","11":"tag-draws","12":"tag-line","13":"tag-metamanus","14":"tag-race","15":"tag-u-s"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/27992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27992"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/27992\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/27993"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}