China blocks Meta's Manus deal but reaffirms openness to foreign tech investment

China's top economic planner, the National Development and Reform Commission (NDRC), has denied pressuring domestic tech companies to reject foreign investment, despite blocking Meta Platforms' proposed acquisition of Chinese-founded AI startup Manus. NDRC spokesman Li Chao stated at a press conference on Friday that China has never required tech firms to refuse foreign capital, and supports their integration into global innovation networks. The remarks came in response to a Bloomberg report that Chinese regulators planned to restrict top AI firms from accepting US capital without government approval. The NDRC blocked Meta's purchase of Manus, an AI startup officially registered in Singapore but developing products in mainland China, in late April, ordering the parties to cancel the transaction. A separate Bloomberg report indicated Manus is considering raising about US$1 billion from external investors to comply with Beijing's demand to unwind the takeover. Li Chao emphasized that foreign investments must follow China's rules and not harm national security, while asserting that China's door will only become more open.