China’s National Development and Reform Commission (NDRC) announced on Monday it will “prohibit foreign investment in Manus in accordance with laws and regulations, and requires the parties involved to withdraw the acquisition transaction.” The move forces Meta to unwind its roughly $2 billion purchase of AI startup Manus.
Meta, which owns Facebook, Instagram and WhatsApp, said the acquisition had “complied fully with applicable law.” The company added, “We anticipate an appropriate resolution to the inquiry.”
Manus gained attention for marketing what it called the world’s first general AI agent — a framework that can perform tasks such as coding, conducting market research and preparing budgets. The firm does not build its own core AI model; instead, its agent framework runs on top of existing Western large language models.
Last year Manus closed its Chinese offices and re-incorporated in Singapore, a shift that helped it navigate both U.S. restrictions on investing in Chinese AI firms and Chinese rules limiting startups’ ability to transfer IP and capital abroad. Meta had announced the acquisition in December and stated there would be “no continuing Chinese ownership.”
The NDRC decision comes amid intensifying China–U.S. competition over AI, a field Beijing treats as vital to economic strength and national security. China has recently made notable strides in AI — for example, the launch of its domestically developed DeepSeek model briefly rattled U.S. tech stocks, including Meta, Nvidia and Microsoft.
Analysts say Beijing’s intervention could set a precedent. “China is showing the world that it is willing to play hardball when it comes to AI talents and capabilities, which the country views as a core national security asset,” said Lian Jye Su, chief analyst at Omdia. “It is strongly indicative of what Chinese authorities may do going forward regarding acquisitions involving Chinese deep-tech companies.”
Edited by: Srinivas Mazumdaru