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Bejing tightens scrutiny of artificial intelligence industry amid intensifying geopolitical rivalry with the US over the technology.

China has said it is blocking tech giant Meta from an acquisition of artificial intelligence (AI) startup Manus, tightening scrutiny of investment in domestic startups developing frontier technologies from the United States.

China’s National Development and Reform Commission (NDRC) said on Monday that it was prohibiting the foreign acquisition of Manus, without specifically naming Meta.

The move highlights Beijing’s increased concern over US acquisitions of Chinese AI talent and intellectual property, as Washington tries to limit Chinese tech firms’ access to advanced US chips.

It was not immediately clear on what grounds China was seeking the annulment of a deal involving a Singapore-based company and how, if at all, a completed acquisition transaction would be unwound.

Manus, which has Chinese roots but is based in Singapore, provides general-purpose AI agents designed to carry out complex tasks with minimal human intervention.

The call to annul the deal was made by the commission in accordance with Chinese laws and regulations, the NDRC’s statement said.

California-based Meta said in response to the statement: “The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry.”

A White House spokesperson said in a statement that the Trump administration “will continue defending America’s leading and innovative technology sector against undue foreign interference of any sort”.

Meta announced in December that it was acquiring Manus. It is a rare case of a major US tech group buying an AI company with strong links to China. The deal was forecasted to help expand AI offerings across Meta’s platforms.

Meta had said there would be “no continuing Chinese ownership interests in Manus” and that Manus would discontinue its services and operations in China.

But China said in January that it would investigate whether the acquisition would be consistent with its laws and regulations.

After a $75m fundraising round led by US venture firm Benchmark in May 2025, Manus shut its China offices, laying off dozens of employees. It then moved its operations to Singapore.

This enabled Manus’s parent company, Butterfly Effect, to reincorporate ⁠in Singapore and bypass US investment restrictions on Chinese AI firms, as well as Chinese rules limiting domestic AI firms’ ability to transfer their IP and capital overseas.

The Chinese bid to block the deal comes weeks before a planned mid-May summit between US President Donald Trump and Chinese President Xi Jinping in Beijing.

April 14 (UPI) — The founder and former chairman of Chinese property giant China Evergrande Group pleaded guilty Tuesday to a slew of charges, including embezzlement, securities fraud and corporate graft at a trial in the southern city of Shenzhen.

Hui Ka Yan admitted “illegally absorbing public deposits” where buyers’ down payments on apartments off-plan were used to fund hundreds of other projects in the case in which Evergrande Real Estate Group also faced a similar set of charges, the Intermediate People’s Court of Shenzhen said in a statement online.

Evergrande took in millions of dollars from buyers that, instead of being used to complete the properties they were purchasing, were diverted to new developments, the court heard.

Hui also admitted fundraising fraud, illegal issuance of loans and unauthorized disclosure of “important information” during the high-profile two-day trial, which was attended by deputies from the National People’s Congress, the Chinese People’s Political Consultative Conference of which he was once a standing committee member, and investors.

The court statement said China Evergrande Group and Evergrande Real Estate Group were also indicted on charges of illegally collecting public deposits, fundraising fraud, illegal issuance of loans and fraudulent issuance of securities.

The downfall of the business tycoon, once Asia’s richest with a net worth of more than $42 billion, began in 2021 when the property empire he founded 25 years earlier collapsed after a massive Chinese property bubble burst, leaving 1,300 half-finished Evergrande developments financed with $300 billion of debt.

Hui was placed under house arrest in September 2023, prompting the suspension of trading in Evergrande shares by market regulators across the border in Hong Kong, only a month after trading had resumed following a 17-month suspension.

The company was also the subject of a winding-up petition in a Hong Kong court brought by creditors and had sought protection from being made bankrupt in the United States in a New York court the previous month.

Hong Kong regulators initially suspended Evergrande for failing to issue financial results for two years. When it did report in July 2023, it said it had lost $81.1 billion total in 2021 and 2022, mostly through payments to suppliers and lenders, as it battled to finish thousands of housing projects across 280 Chinese cities.

In January 2024, after repeated reprieves to allow it time to come up with a viable plan to restructure liabilities that had by then grown to at least $325 billion, the court in Hong Kong placed Evergrande into liquidation.

Hui was handed a $6.5 million fine in March 2024 for Evergrande, stating in its results that revenue was $78 billion more than it actually was and was handed a lifetime ban from participating in China’s capital market.

The final blow came in August 2025 with the delisting by regulators of Evergrande shares from the Hong Kong Stock Exchange, almost 16 years to the day after it was the most oversubscribed IPO of 2009 with a valuation in excess of $50 billion.

The ban was imposed after an 18-month deadline for Evergrande stock to resume trading passed the previous month, with the company opting not to appeal the decision.

Hui had led a 15-year drive to grow Evergrande into one of China’s largest businesses, spending billions expanding into tourism and recreation, healthcare, finance, EV manufacturing and infrastructure, entertainment and agribusiness.

In 2020, it began work on a new $1.7 billion, 100,000-seat stadium for Guangzhou FC, the soccer club it had purchased 10 years earlier.

However, the company’s growth was delivered through massive borrowing, much of it highly leveraged, with the result that six years on the stadium, like many of Evergrande’s projects, it remains incomplete after it was seized by the government in November 2021.