China’s National Development and Reform Commission (NDRC) has officially blocked Meta’s acquisition of AI startup Manus, ordering both parties to unwind the transaction, according to Reuters and TechCrunch.
What Happened
On April 27, 2026, China’s NDRC issued a ruling prohibiting foreign investment in the Manus project and directing both firms to terminate the agreement, as reported by Business Today and corroborated by Reuters.
Meta had announced the December 2025 acquisition of Manus—a Chinese-founded, Singapore-incorporated AI startup valued at around US$2 billion (a figure confirmed by TechCrunch, Forbes, Bloomberg, and Reuters).
Why It Matters
Officials in Beijing raised concerns that the transaction could result in strategic AI technology crossing national boundaries, prompting scrutiny under export control and foreign investment rules as noted by multiple outlets including Business Today and SCMP.
The NDRC’s move follows a probe launched earlier in 2026 by the Ministry of Commerce into whether the deal violated technology export and foreign investment regulations.
Meta’s Position
Meta stated that the transaction complied with applicable law and that it expects an "appropriate resolution" to the inquiry, according to statements reported by TechCrunch.
Nonetheless, with Manus employees reportedly relocated to Meta’s Singapore offices and key founders reportedly subject to travel restrictions in China, the unwinding process could be complex.
Broader Implications
- This case underscores Beijing’s heightened vigilance over foreign acquisitions involving AI, especially in sectors tied to national security.
- For Meta, this represents a major blow to its strategy of acquiring agentic AI capabilities to bolster its offerings amid competition from other global tech leaders.
Conclusion
The NDRC’s directive marks a significant escalation in China’s intervention in cross-border AI deals and signals tighter regulatory oversight over technology transfer. As both sides weigh next steps, this development reflects broader geopolitical tensions around AI and foreign investment.