Here’s something we haven’t seen before: China has ordered Meta to reverse its completed acquisition of AI startup Manus. The National Development and Reform Commission (NDRC) issued a brief statement on Monday, prohibiting foreign investment in the startup — no elaboration, just a reference to applicable laws and regulations.
What Is Manus?
Manus is a Singapore-based AI startup with Chinese roots, specializing in agentic AI — systems that can autonomously complete tasks. Meta acquired the company in late December 2025 for over $2 billion, had already integrated the technology into its internal systems, and Manus executives had joined Meta.
Why This Is a Big Deal
The striking part: this deal was already done. Meta had fully integrated Manus, leadership had moved over. Beijing is now forcing a US company to unwind a completed acquisition. That’s unprecedented.
China’s Ministry of Commerce launched an investigation back in January, looking into export controls, technology transfer, and overseas investment compliance. According to the Financial Times, the two co-founders — Xiao Hong and Ji Yichao — were even banned from leaving the country during the probe.
What It Means
Meta responded with a terse statement: the transaction “complied fully with applicable law” and they “anticipate an appropriate resolution.” Whatever that means in practice.
This case shows just how far the AI rivalry between the US and China has escalated. It’s no longer just about restricting chips and models — corporate acquisitions are now geopolitical chess pieces. For startups with Chinese heritage, the landscape is getting increasingly treacherous. Who invests when Beijing can unwind a deal years after the fact?
Sources: CNBC, TechCrunch, Bloomberg