Beijing says domestic tech companies must seek explicit government approval for accepting US investment

China has blocked Meta’s $2bn (£1.5bn) acquisition of an AI startup as it cracks down on US investments in domestic tech companies.

Mark Zuckerberg’s Meta, the owner of Facebook, Instagram and WhatsApp, announced the acquisition of Manus, a developer of autonomous AI agents, in December.

However, the Chinese National Development and Reform Commission (NDRC) said on Monday it had cancelled the takeover.

In a statement, China’s top economic planning body said that it will “prohibit the foreign investment in the acquisition of the Manus project” and “requires the parties involved to withdraw the acquisition transaction”.

Bloomberg reported last week that Chinese regulators are planning to block tech firms, including leading AI startups, from accepting US investment without government approval.