Key facts
- China is tightening border controls on data, AI, and advanced technologies starting September 15.
- Meta's planned $2 billion acquisition of AI startup Manus was blocked by China's NDRC.
- The Manus acquisition was blocked due to national security and export control concerns.
- Manus, an AI agent startup, relocated its headquarters to Singapore from China.
- The US has protested China's action, stating it will defend its technology sector.
China is bolstering its entry and exit controls for advanced technologies, including artificial intelligence, with new regulations set to take effect on September 15. This move is intended to protect the nation's economic security and prevent the leakage of sensitive data and technologies.
The heightened scrutiny appears to be partly spurred by Meta's attempted $2 billion acquisition of Manus, a Chinese AI startup that had relocated its headquarters to Singapore. China's National Development and Reform Commission (NDRC) ultimately blocked the acquisition, citing national security risks and export control concerns.
Manus, launched in March 2025, is described as a general-purpose AI agent. Its parent company, Butterfly Effect, is based in Beijing and Wuhan. The startup had previously raised $75 million from venture firm Benchmark, which triggered a U.S. Treasury probe. Manus reduced its China-based team from 120 to 40 employees before its relocation.
Following the NDRC's decision, the White House issued a statement protesting China's action and vowing to defend the U.S. technology sector against foreign interference. Meta has indicated it will comply with Beijing's order for now.