China Quashes Meta’s $2 Billion Bid to Acquire AI Startup Manus

China’s economic body, the National Development and Reform Commission (NDRC), has stopped Meta Platforms’ (META) bid to buy AI startup Manus for $2 billion. The move blocks Meta’s push to grow its AI tools across its social apps and reflects China’s effort to keep foreign firms out of its tech sector. Meanwhile, Meta’s stock stayed up even after the ban, rising over 2.4% at the time of writing.

China Orders Meta and Manus to Cancel Takeover Deal

The NDRC ordered Meta and Manus on Monday to end their deal, noting that the ban is in line with set laws and regulations. Notably, Manus co-founders Xiao Hong and Ji Yichao were reportedly barred from leaving China last month while state staff reviewed the planned sale.

The deal has also drawn heat from Washington, as U.S. law bars American investors from directly funding Chinese AI firms. At the same time, Beijing has sped up efforts to stop Chinese AI founders from taking their businesses abroad.

Manus’ China Roots at the Center of Dispute

Although Manus started in Beijing and still has ties to its parent company, Butterfly Effect, it has since shut its China offices and moved operations to Singapore. Following the move, Meta said it would buy the startup in late 2025.

In response, China’s Ministry of Commerce opened a review in January 2026 to check whether the deal broke any laws on trade, tech transfer, or foreign investment. The review was based on concerns in Beijing over the potential loss of key AI tech to a U.S. rival.

Is Meta a Good Stock to Buy?

Based on TipRanks data, META stock currently holds a Strong Buy consensus, drawn from 46 analyst ratings over the past three months. Of these, 40 analysts assign a Buy, 6 suggest Hold, and 0 recommend Sell. The stock has an average price target of $854.4, implying 26.5% upside from its current price. For more information on this stock’s ratings, performance metrics, and forecast, visit TipRanks Stocks Comparison Center.