China’s state planner has ordered Meta to withdraw its planned $2 billion acquisition of Manus, a Singapore-based artificial intelligence startup with Chinese origins, following regulatory intervention over the deal. (27/04)

The National Development and Reform Commission stated that the decision to prohibit foreign investment in Manus was made in accordance with laws and regulations and instructed both parties to withdraw the transaction.

The commission did not provide additional details but confirmed its directive in a brief statement, marking an official halt to the acquisition process.

Beijing Cites Legal and Regulatory Compliance in Decision

Chinese authorities have emphasized that the intervention aligns with existing legal frameworks governing foreign investment.

The state planner’s move follows heightened scrutiny of cross-border technology transactions involving artificial intelligence firms.

Earlier, China’s Ministry of Commerce had launched an assessment into whether the acquisition complied with export control rules, technology import and export regulations, and overseas investment policies.

Deal Faced Scrutiny From China and the United States

The proposed acquisition had already drawn attention from both Chinese and U.S. regulators. Washington has restricted American investors from directly backing Chinese AI companies, while Beijing has intensified efforts to discourage domestic AI founders from relocating operations overseas.

The transaction became part of wider regulatory concerns surrounding the movement of AI companies and capital across borders.

Manus’ Rapid Growth and AI Development Role

Manus was originally founded in China before relocating its headquarters to Singapore. The company develops general-purpose AI agents capable of performing complex tasks, including market research, coding, and data analysis.

Its first general AI agent was launched in March last year and gained industry attention, with comparisons to major AI players. The startup also reported more than $100 million in annual recurring revenue in December, approximately eight months after launching its product.

Manus raised $75 million in a funding round led by U.S. venture capital firm Benchmark in April of the previous year.

Meta’s Acquisition Plan and Regulatory Response

Meta announced the acquisition in December, stating the move would help accelerate artificial intelligence innovation and integrate advanced automation into its consumer and enterprise products, including its Meta AI assistant.

However, in January, China’s Ministry of Commerce began reviewing the deal under regulations related to export controls and overseas investment compliance. Meta later stated that the transaction “complied fully with applicable law” and expected a resolution to the inquiry.

When asked about the decision, APEC Senior Officials Meeting Chairman Chen Xu said it is “important that all parties act in a spirit of mutual benefit,” noting that such issues, if handled properly, could support more substantive discussions within APEC.

PHOTO: VCG/GETTY IMAGES

This article was created with AI assistance.

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