The National Development and Reform Commission in China has mandated that Meta reverse its acquisition of the Chinese AI company Manus, instructing both entities to terminate the deal.
In a statement, the commission announced it would “prohibit foreign investment in Manus according to laws and regulations, necessitating the involved parties to rescind the transaction.”
Meta disclosed plans for acquiring Manus in late December 2025 for approximately $2 billion. An investigation by China’s commerce ministry commenced in January 2026.
By March 2026, regulatory scrutiny escalated. Reuters reported that Manus co-founders Xiao Hong and Ji Yichao were summoned to Beijing for discussions with regulators and subsequently restricted from leaving the country. The company had begun dissolving its operations earlier, shutting down China offices and laying off staff in July 2025.
Manus develops “truly autonomous” AI agents capable of independent task execution. Despite relocating to Singapore around mid-2025, as TechCrunch noted, Chinese regulators proceeded with their veto on Monday.
The firm’s rapid growth had previously attracted significant investment. A $75 million funding round led by Benchmark was completed in May 2025, and Manus achieved $100 million in annual recurring revenue by December 2025, eight months post-launch.
The National Development and Reform Commission’s intervention highlights the strategic value Beijing places on AI assets. By March 2026, TechCrunch reported approximately 100 Manus employees had transferred to Meta’s Singapore offices.
Meta’s acquisition of Manus is part of its broader strategy to expand its AI capabilities, aiming to compete with giants like OpenAI, Anthropic, and Google. The company recently announced plans to cut 8,000 jobs, leave 6,000 positions unfilled, and potentially invest billions in Amazon’s AI chips.