Meta had already completed the acquisition of Manus, a Chinese-origin AI startup, in December 2025. Around a hundred engineers had moved to Meta's Singapore offices, investors had been paid, and the deal appeared finished. However, on April 27, China's National Development and Reform Commission ordered both companies to unwind the transaction.
Manus creates AI agents that can perform tasks like market research and data analysis independently. The company, founded in Beijing, had relocated to Singapore in 2025 to pursue Western investment. When Meta announced the $2 billion acquisition, it promised there would be no Chinese ownership interests remaining.
China disagreed. Regulators opened a formal investigation in January, examining the deal under technology export and investment laws. By March, the situation became more serious when Manus co-founders Xiao Hong and Ji Yichao were summoned to Beijing and banned from leaving the country.
The unwinding order is historically significant. Meta's employees had already joined the company, prior investors including Tencent had received their money, and the integration was largely complete. Meta stated the transaction fully complied with applicable law.
This move reflects growing tensions between the United States and China over artificial intelligence technology. Washington has restricted chip exports to China, while Singapore has become popular for Chinese tech companies seeking Western investment. A summit between Presidents Trump and Xi Jinping is scheduled for mid-May in Beijing.