China’s top economic planner, the National Development and Reform Commission (NDRC), has ordered Meta to unwind its approximately $2–3 billion acquisition of AI startup Manus, intensifying scrutiny of foreign involvement in advanced technology firms, according to multiple news outlets including TechCrunch and the Associated Press.
Key Developments
In late April 2026, the NDRC announced it would prohibit the acquisition and instructed all parties to withdraw from the transaction, citing compliance with domestic laws and regulations. The agency’s statement did not explicitly name Meta, but all evidence indicates the directive targets that deal.
This represents a rare intervention by Chinese regulators that effectively reverses a completed cross‑border transaction.
Background of the Deal
Meta announced its acquisition of Manus in December 2025, aiming to integrate the startup’s “general‑purpose” AI agent technology—capable of autonomously performing multi‑step tasks—into its AI offerings, including Meta AI. The deal was valued at roughly US $2–3 billion.
Manus was founded in 2022 by Chinese entrepreneurs, initially based in China under Butterfly Effect before relocating to Singapore and raising Western capital. Meta stated the acquisition complied with applicable laws and that there would be no continuing Chinese ownership.
Regulatory Pushback and Implications
Earlier in 2026, Chinese regulators showed concern. In March, Manus executives—CEO Xiao Hong and Chief Scientist Ji Yichao—faced government travel restrictions during the ongoing review process.
The NDRC’s order suggests authorities viewed the deal as potentially involving the transfer of strategically sensitive technology or talent, despite the company’s re‑incorporation in Singapore.
Industry observers have noted this move reflects broader geopolitical tensions, where both China and the U.S. increasingly treat AI as a national security arena, and where regulatory reviews now consider not only company domicile but also origins of technology, personnel, and data flows.
Conclusion
The NDRC’s decision to roll back Meta’s acquisition of Manus highlights accelerating scrutiny of cross‑border technology transfers amid rising bilateral tensions. For Meta, the move poses significant strategic and operational challenges in its AI ambitions.
This case signals to global tech executives that regulatory environments in China are evolving—and that completed transactions may still be subject to reversal if deemed sensitive or non‑compliant.