China has ordered Meta to unwind its more than $2 billion acquisition of artificial intelligence start-up Manus, marking a major escalation in Beijing’s scrutiny of foreign investment in sensitive technology sectors. The order was issued on Monday by the National Development and Reform Commission.
The document stated that the transaction would be prohibited under national laws and regulations and that the parties involved must withdraw from the deal.
The move highlights Beijing’s determination to prevent U.S. companies from gaining control of Chinese AI talent, intellectual property and strategic capabilities, particularly as Washington continues restricting Chinese access to advanced semiconductors.
Meta said in response that the acquisition had complied with applicable laws and that it expected an appropriate resolution.
China rarely orders already completed corporate acquisitions to be reversed. Meta finalised the deal in December, while Chinese authorities opened an investigation in January.
According to sources familiar with the matter, Manus co-founders Xiao Hong and Ji Yichao were summoned by regulators in March and later barred from leaving China.
Manus had reportedly moved operations to Singapore after shutting its China offices last year, allowing parent company Butterfly Effect to re-incorporate offshore and seek foreign capital.
However, analysts say Beijing is increasingly looking beyond a company’s legal registration and focusing instead on where technology was developed, where research teams are based and where sensitive data flows.
“In sensitive technology sectors, a deal may be reviewed not only as an M&A transaction, but also as a potential transfer of strategic technology,” said Carl Li, a partner at Chinese law firm Zhong Lun.
The case is likely to send a strong signal to Chinese start-ups using Singapore structures to attract overseas investors, a practice sometimes described by analysts as “Singapore washing”.
Experts say future deals may face stricter compliance tests covering management location, IP ownership, R&D activity and regulatory approvals.
Meta had acquired Manus to strengthen its push into AI agents - software designed to perform complex tasks with limited human input.
Manus gained attention last year after Chinese state media praised it as a potential rival to DeepSeek following the launch of what it described as the world’s first general AI agent framework.
The decision comes weeks before an expected summit between Donald Trump and Xi Jinping in Beijing, adding another layer of tension to the technology competition between the world’s two largest economies.
“China is saying we will prevent foreign acquisition of assets we consider important for national security and AI is now clearly one of them,” said analyst Alfredo Montufar-Helu.
Former security chief Kamchybek Tashiev has been questioned in connection with an alleged attempt to seize power by force, Kyrgyz lawyer Sherdor Ab...
Kyrgyzstan is preparing a new national programme aimed at increasing employment, reducing poverty and improving the coordination of labour, social ...
Profits for worldwide energy company TotalEnergies have risen 41% in three months, as global energy supplies are disrupted after two months of war ...
The renewed discussions on reopening the Kars-Gyumri railway between Türkiye and Armenia have been described as “historic progress&rdquo...
Reversing a decade of restrictions, New South Wales has opened new areas for gas exploration in its remote west. The move reflects growing concern ...
Former security chief Kamchybek Tashiev has been questioned in connection with an alleged attempt to seize power by force, Kyrgyz lawyer Sherdor Abdykaparov said.
Profits for worldwide energy company TotalEnergies have risen 41% in three months, as global energy supplies are disrupted after two months of war and oil prices have increased by 3%.
The renewed discussions on reopening the Kars-Gyumri railway between Türkiye and Armenia have been described as “historic progress” and “a positive step” within a complex regional landscape.
Reversing a decade of restrictions, New South Wales has opened new areas for gas exploration in its remote west. The move reflects growing concern over future energy supply across Australia’s east coast.
President Donald Trump said on Sunday Iran could telephone if it wants to negotiate an end to their two-month war. Tehran said the U.S. should remove obstacles to a deal, including its blockade of Iran's ports. Meanwhile Iranian Foreign Minister Abbas Araghchi arrives in St Petersburg for talks.
Tensions between the United States and Iran remain high after a U.S. official said President Donald Trump was unhappy with a proposal from Tehran that does not deal with its nuclear programme. Washington is insisting that any talks must address Iran’s nuclear activities.
Speaking during a White House state dinner for the British monarch’s state visit to Washington on Tuesday, President Donald Trump said that the U.S. has "militarily defeated" Tehran and that King Charles III did not want Iran to have a nuclear weapon. However, Charles did not mention the Iran war.
The death toll from a train collision near Indonesia’s capital Jakarta rose to 14 women on Tuesday (28 April), with 84 people injured, after rescuers completed efforts to free passengers trapped in the wreckage, the state rail operator said.
Mexican special forces arrested Audias Flores, known as “El Jardinero”, a senior commander of the powerful Jalisco New Generation Cartel (CJNG), during an operation in the western state of Nayarit, Security Minister Omar García Harfuch said on Monday (27 April).
The decision by the United Arab Emirates to leave OPEC+ on 1 May has put renewed focus on one of the most influential groups in global energy - and how its decisions can shape oil prices worldwide.
The United Arab Emirates has said it's quitting OPEC from 1 May, dealing a major blow to the oil producers’ group and its de facto leader, Saudi Arabia, amid disruption caused by the Iran war.
As the Iran war disrupts global flows of oil and gas and energy prices skyrocket, the Drin River, which descends through the mountains of northern Albania, is acting as a kind of shield.
Adidas shares rose after Kenya’s Sebastian Sawe delivered a historic performance at the London Marathon on Sunday (26 April), becoming the first athlete to run an official marathon in under two hours.
The United States has issued an international warning accusing Chinese firms, including AI start-up DeepSeek, of allegedly stealing intellectual property from American artificial intelligence labs.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment