China blocked Meta's $2 billion deal. Two internets are forming
China blocked Meta’s $2 billion deal. Two internets are forming
April 27, 2026, Beijing. China’s NDRC regulator blocked Meta’s acquisition of Chinese AI firm Manus. Deal value: $2 billion. First time China blocked such a large US AI deal.
Manus is a Chinese startup building agentic AI - systems that execute tasks themselves (research, book tickets, organize calendars). Meta planned to acquire them for their Llama family of models.
Beijing’s response was brief and without details. NDRC stated: “We prohibit foreign investment in the Manus project in accordance with law.” No further explanation. Required action: withdraw the transaction.
What it means
It’s the first time China blocked such a large US AI deal. American Big Tech can no longer freely buy Chinese AI companies.
Three consequences:
- TWO internets are forming - American and Chinese, each with its own AI models
- Big Tech has $665B for AI in 2026 - NONE of it will flow to China
- Money goes to American startups - Anthropic, xAI, Mistral, Cohere
And Chinese AI? They do their own. For themselves only. DeepSeek, Qwen from Alibaba, Doubao from ByteDance, Hunyuan from Tencent.
Full geopolitical context
Third week in a row of AI cold war escalation:
- #04 (April): OpenAI + Anthropic + Google coalition against China model copying
- #06 (April): Google TPU 8t/8i as Nvidia alternative
- #07 (April): China blocks Meta-Manus + Google signs classified Pentagon deal
The US invests billions in American AI labs and signs military contracts. China builds its own industry and blocks American investments.
My perspective
This is the beginning of a real AI cold war. Not a metaphor.
In two years there won’t be a “global” AI industry. There will be two. And you’ll have to pick which one you use.
Your next phone - will you buy Galaxy with Chinese Doubao AI? Or iPhone with American Gemini-on-device? That’s not a hypothetical question. That’s a 2027 decision.