Chinese regulators have blocked Facebook parent Meta's over $2 billion acquisition for AI startup Manus, underlining heightened scrutiny of high-tech companies getting U.S. investment.

The National Development and Reform Commission said Monday that it has decided to prohibit the acquisition of Manus by a foreign entity and asked the parties involved to terminate the transaction.

That came after China's commerce ministry said in January that authorities would conduct an investigation into the deal.

Meta agreed to buy Manus, a Singapore-based company with Chinese founders, for more than $2 billion late last year.

Last month, China had told two co-founders of the startup not to leave the country while authorities review the sale to Meta, The Wall Street Journal reported, citing people familiar with the matter.

Founded by Chinese entrepreneurs, the company has made strategic decisions to distance itself from its Chinese roots.

Last year, Manus turned down some local governments in China that wanted to invest in the company, the Journal reported previously. It moved its base to Singapore in mid-2025.

Meta didn't immediately respond to a request for comment.