China Orders Meta to Unwind $2 B Acquisition of AI Startup Manus

On 27 April 2026 the National Development and Reform Commission (NDRC) ordered Meta to unwind its $2 billion-plus purchase of Manus, a Singapore AI startup founded by Chinese entrepreneurs, without providing a reversal method.

CNBC

Manus, led by CEO Xiao Hong and chief scientist Ji Yichao, relocated from China to Singapore in 2025 to avoid export controls. Meta, a U.S. tech conglomerate, completed the acquisition in December 2025, claiming full compliance.

Reuters

• Jul 2025 – Manus closes China offices, moves to Singapore.

Reuters

• Dec 2025 – Meta finalizes $2 billion-plus acquisition.

Reuters

• Jan 2026 – Commerce ministry opens investigation.

Reuters

• Apr 27 2026 – NDRC orders unwind.

CNBC

The deal exceeds $2 billion; Manus reported $100 million ARR by Dec 2025 and raised $75 million in May 2025.

Reuters

Manus launched its first general AI agent in March 2024, achieving $100 million ARR by December 2025, eight months after launch. The startup’s May 2025 $75 million funding round was led by Benchmark.

CNBC

The order extends Chinese scrutiny to R&D origins, data flows and founding teams, treating AI as a national-security asset. It undermines the “Singapore-washing” route Chinese AI firms used to secure foreign capital.

CNBC

The NDRC said it prohibits foreign investment in Manus and orders the acquisition withdrawn. Meta replied the deal complied fully with law and expects an appropriate resolution.

New York Times

Venture capitalists and founders warned the move could deter Chinese AI firms from foreign partnerships; analysts called it a stark national-security signal. The decision also sparked worries among venture capitalists about the viability of future cross-border funding for Chinese AI firms.

CNBC

Manus staff now work in Meta’s Singapore office; co-founders were summoned to Beijing and barred from leaving.

Reuters

Deal size is reported as $2 billion or $2 billion-plus; unwind method remains unspecified. The NDRC’s notice omitted Meta’s name, and legal analysts say the jurisdiction for undoing a Singapore-registered deal remains unclear.

Reuters

• “The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry,” — Meta spokesperson

Reuters

• “It shows that the regulatory analysis is no longer limited to the place of incorporation of the target company. The origin of the technology, the location of ?core R&D, the nationality and location of the founding team, historical China operations, data flows, and the process of offshore restructuring may all become relevant,” — Carl Li, partner, Zhong Lun

Reuters

• “I would not say this ends Chinese companies moving to Singapore. Rather, it raises the compliance threshold,” — Ben Chester Cheong, lecturer, Singapore University of Social Sciences

Reuters

• “AI has become central to strategic competition between the world's two largest economies, said Alfredo Montufar-Helu, a managing director at Ankura China Advisors.” — Alfredo Montufar-Helu, managing director, Ankura China Advisors

Reuters

The mid-May U.S.–China summit may shape new tech-investment rules, and Chinese regulators are expected to issue further AI acquisition guidance.

Reuters