China National Development and Reform Commission has ordered Meta to unwind its $2 billion-plus acquisition of AI startup Manus, marking a major escalation in China’s crackdown on foreign control of sensitive domestic technology.
Chinese regulators said the deal violates national security and foreign investment rules, signaling Beijing’s determination to prevent U.S. firms from acquiring Chinese AI talent, intellectual property and strategic capabilities.
Although Manus had shifted operations to Singapore after restructuring, Chinese authorities reportedly viewed its Chinese origins, R&D base and founding team as sufficient grounds for intervention. The order could require reversing technology transfers, restoring assets and restructuring ownership.
The case sets a new precedent for cross-border AI and tech acquisitions, with analysts warning China may increasingly scrutinize “Singapore-washed” restructurings designed to attract foreign capital while preserving Chinese-origin innovation.
