China’s state planner on Monday called for the unwinding of Meta’s $2 billion acquisition of Singaporean artificial intelligence startup Manus, which has Chinese roots. The National Development and Reform Commission said in a brief statement that the decision to prohibit foreign investment in Manus was made in accordance with laws and regulations. It added that it has asked the parties involved to withdraw the acquisition transaction.
The deal has been the subject of scrutiny from both Washington and China. While lawmakers in the U.S. have prohibited American investors from backing Chinese AI companies directly, Beijing has increased efforts to discourage Chinese AI founders from moving business offshore.
The Chinese government’s intervention in the transaction caused concerns for tech founders and venture capitalists, who were hoping to take advantage of the “Singapore-washing” model where companies relocate from China to the city-state to avoid scrutiny from Beijing and Washington.
READ: China bars co-founders of AI company Manus from leaving country (March 25, 2026)
Manus was founded in China before relocating to Singapore. The company is known for building general‑purpose autonomous AI agents capable of completing complex tasks like coding, research, planning, and data analysis without step‑by-step human guidance. The deal is one of Meta’s largest acquisitions outside of WhatsApp and Scale AI.
Manus said it had passed $100 million in annual recurring revenue, or ARR, in December 2025, eight months on from launching a product, which it claimed made it the fastest startup in the world at the time to hit the milestone from $0.
The AI company raised $75 million in a round led by U.S. VC Benchmark in April 2025.
While announcing the deal last year, Meta said it would conduct an assessment and investigation into how the acquisition complied with laws and regulations concerning export controls, technology import and export, and overseas investment.
READ: Meta to acquire Singapore-based AI startup Manus (December 30, 2025)
A Meta spokesperson told CNBC that the transaction “complied fully with applicable law,” and that it anticipated “an appropriate resolution to the inquiry.”
When asked about China’s move to block Meta’s Manus acquisition, APEC Senior Officials Meeting Chairman Chen Xu told reporters that it is “important that all parties act in a spirit of mutual benefit.“
Chen said he did not know the specifics of the issue, however he said that “if such an issue can be handled properly, it can help facilitate more substantive discussions in APEC,” according to an official English translation.
In March, it was reported that China had barred the two co-founders of Manus from leaving the country as regulators reviewed whether Meta’s acquisition of the firm violated investment rules.