China's National Development and Reform Commission has formally ordered Meta Platforms Inc. to unwind its acquisition of Manus, a Singaporean agentic AI startup with Chinese roots. The NDRC’s Office of the Working Mechanism for Foreign Investment Security Review issued the cancellation order on Monday, following a probe into the transaction.
Meta, the owner of Facebook, acquired Manus in December 2025 for a sum reported between $2 billion and $2.5 billion to boost its capabilities in AI agents. Beijing has now banned the acquisition and ordered the involved parties to rescind the transaction.
The move is considered Beijing’s most aggressive step to date to stop the loss of AI talent to the United States and prevent the leakage of technology. This action comes as China tightens scrutiny of U.S. investment in domestic startups specializing in frontier technologies.
The ruling has already had personal consequences, as Manus co-founders Xiao Hong and Ji Yichao have been barred from leaving China since March. While the full impact is not yet clear, the decision may send a chilling signal to Chinese tech founders seeking foreign partnerships and sets the stage for a complicated legal and political fight.