China has banned Meta from acquiring AI startup Manus for $2 billion and has demanded that the deal be withdrawn

According to reports by the BBC and CNBC on April 27, China’s National Development and Reform Commission (NDRC) has halted Meta Platforms’ deal to acquire AI startup Manus for about $2 billion. In a statement, the NDRC ordered the relevant parties to withdraw the acquisition. A Meta spokesperson said the deal “fully complies with applicable law” and expects the investigation to be resolved properly.

NDRC Ban Content and Meta’s Official Response

According to a statement issued by the NDRC, based on relevant laws and regulations, the commission made a decision to prohibit foreign investment in Manus and requested that the relevant parties withdraw the acquisition deal. In a quote to the BBC, a Meta spokesperson said: “The deal fully complies with applicable law. We expect the investigation to be resolved properly.”

China’s Review Timeline and Founder Travel Ban

According to publicly reported coverage, Meta announced the acquisition of Manus in late December 2025, with an estimated deal value of about $2 billion (about £1.48 billion). In January 2026, China’s Ministry of Commerce announced it would launch an investigation into whether this acquisition complies with export controls, technology import and export, and overseas investment-related regulations.

According to media reports in March, during China’s review period, two co-founders of Manus were banned from leaving China. A spokesperson for Manus at the time told the BBC: “Manus’ team has now been deeply integrated with Meta, handling operations, improving and developing Manus services, and will continue to serve millions of users.”

Manus Background: Founded in China, Relocated to Singapore

According to public information, Manus was originally established in China and later moved to Singapore. Its main business is developing general-purpose AI agents, whose services can independently plan, execute, and complete complex tasks according to instructions. In March 2025, Manus released its first general-purpose AI agent. After the release, some media outlets dubbed it “the next DeepSeek.” In April 2025, Manus completed a $75 million funding round led by the U.S. venture capital firm Benchmark. Manus said that eight months after the product went live, its annual recurring revenue (ARR) surpassed $100 million in December 2025.

Sino-U.S. Tech Geopolitical Background

According to CNBC’s report, the deal drew close attention from both sides of China and the U.S. U.S. lawmakers have prohibited U.S. investors from directly investing in Chinese AI companies; at the same time, the Chinese government has continued to step up efforts to prevent Chinese AI startups from shifting their business overseas.

The White House said Friday it would work more closely with U.S. AI companies to combat “large-scale actions” aimed at stealing technological成果, and said new information shows that “foreign entities primarily located in China” are copying U.S. AI models. A representative from the Chinese embassy in the U.S. objected to the statement, saying that “the U.S. is engaging in unreasonable suppression of Chinese companies,” and added that “China is not only the world’s factory, but is also becoming a world innovation laboratory.”

Frequently Asked Questions

What is the legal basis for the NDRC’s move to halt Meta’s acquisition of Manus?

According to the NDRC’s official statement, the ban was made based on relevant laws and regulations, and the commission has requested that the relevant parties withdraw the acquisition deal; the statement does not specify the particular legal provisions cited.

When did Meta announce the acquisition of Manus, and when did China launch the investigation?

According to reports by the BBC and CNBC, Meta announced the acquisition of Manus in late December 2025, with an estimated deal value of about $2 billion. China’s Ministry of Commerce announced it would launch an investigation in January 2026, and the NDRC made the final decision to halt the deal.

What are Manus’ main business and key financial milestones?

According to public information, Manus’ main business is developing general-purpose AI agents that can independently plan and execute complex tasks. Manus said its ARR surpassed $100 million in December 2025, and that in April 2025 it completed the $75 million funding round led by Benchmark.