China Blocks Meta AI Acquisition Amid Rivalry

China has halted Meta's acquisition of AI startup Manus, citing national security concerns and deepening the US-China AI rivalry. This decision complicates efforts by tech founders to navigate international deals amid escalating geopolitical tensions. Manus, known for its AI agent technology, was acquired by Meta in late 2025, but Chinese regulators initiated a review in early 2026. The unwinding of the deal poses a setback for Meta's AI ambitions and highlights the increasing difficulty of cross-border tech collaborations, particularly in the sensitive AI sector.