China Orders Meta to Unwind $2B Manus Acquisition

China's National Development and Reform Commission ordered Meta Platforms to unwind its $2 billion acquisition of Manus, an artificial intelligence startup with Chinese origins now based in Singapore, following a security review of foreign investment.

The commission announced the decision on Monday, stating that the transaction violated Chinese laws and regulations on overseas investments, technology exports, cross-border data transfers and mergers. It required all parties to withdraw from the deal. The order came after an investigation launched in January by the Ministry of Commerce, which examined whether the acquisition complied with national rules.

Meta announced the purchase in December, describing Manus as a leader in autonomous AI agents capable of performing complex tasks such as coding applications, conducting market research and preparing budgets with minimal supervision. The company, founded by engineers in Wuhan and Beijing, relocated its headquarters to Singapore last year after receiving investment from U.S. venture firm Benchmark. Manus had shed its China operations and stated there would be no continuing Chinese ownership post-acquisition.