China’s top economic planning body, the National Development and Reform Commission (NDRC), has ordered Meta to reverse its acquisition of AI startup Manus. The deal was valued at over $2 billion when Meta completed it in late 2025.
The NDRC said it would “prohibit foreign investment in Manus in accordance with laws and regulations” and required both parties to withdraw from the transaction. The regulator did not name Meta directly in its statement.
Meta said the transaction “complied fully with applicable law” and that it anticipated “an appropriate resolution to the inquiry.”
Manus markets itself as a general-purpose AI agent: a tool that can plan and complete complex tasks without repeated human input, unlike standard chatbots. The company was founded in China but relocated to Singapore after a funding round in 2025, closing its Chinese offices in the process.
China’s move is notable because Manus was incorporated in Singapore at the time of the acquisition. Analysts say Beijing’s decision signals that the origin of a company’s technology, founders, and research and not just its legal address may now determine whether Chinese regulators claim jurisdiction.
Manus co-founders Xiao Hong and Ji Yichao were summoned to Beijing for talks with regulators and were later barred from leaving the country, according to Reuters sources.
The ruling is seen as a warning to Chinese tech startups that relocate to Singapore to attract foreign investment, a practice analysts call “Singapore washing.”
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