Mark Zuckerberg's $2 Billion Meta AI Deal Blocked by China for Second Time

Meta CEO Mark Zuckerberg has invested years in courting China, from learning Mandarin to encouraging employees to study Xi Jinping’s book The Governance of China. Yet Beijing has repeatedly rebuffed his advances.

China’s latest refusal comes with a $2 billion price tag. Regulatory authorities in Beijing have ordered Meta to abandon its planned acquisition of Manus, a Singapore-registered AI startup with deep ties to mainland China. Manus specializes in AI agents capable of executing complex, multi-step tasks.

Meta had agreed to a $2 billion takeover in December 2023. Now, Chinese regulators are demanding both companies withdraw the deal, according to CNBC.

The intervention is widely interpreted as a warning against “Singapore-washing” — the practice of Chinese firms relocating to Singapore to evade scrutiny from U.S. and Chinese financial regulators. The move signals that Beijing will not tolerate such tactics, regardless of the company involved.

The Manus team is now deeply embedded within Meta, where they continue to operate, improve, and expand the Manus service for millions of users. A Meta spokesperson told CNBC:

"The Manus team is now deeply integrated into Meta, running, improving and growing the Manus service and will continue to make it available to the millions of people who enjoy it."

Despite Zuckerberg’s wealth and influence, China has shown no willingness to grant him preferential treatment. For a figure accustomed to global dominance, this persistent rejection stings.

China’s Stance on Foreign Tech Expansion

This is not the first time China has blocked Meta’s ambitions in the country. Earlier efforts to bring Facebook behind the Great Firewall have also failed, including President Xi’s refusal to name Zuckerberg’s newborn baby during a public appearance.

Broader Implications for AI and Tech

The Manus deal’s collapse highlights China’s tightening grip on AI and tech sectors, particularly regarding foreign acquisitions. It also underscores the challenges of navigating cross-border regulatory landscapes in an era of escalating geopolitical tensions.

For more insights on China’s AI sector and regulatory strategies, read: Chinese AI Companies Are Using an Absurd Loophole to Get Around US Chip Restrictions.