China’s top economic planner has ordered Meta Platforms to unwind its proposed $2 billion acquisition of Manus, a Singapore-based artificial intelligence firm with Chinese roots, citing regulatory concerns.
Manus
In a brief statement on Monday, the National Development and Reform Commission (NDRC) said the decision to block the deal was taken in accordance with relevant laws and regulations, and directed the parties involved to withdraw the transaction.
The move comes amid heightened scrutiny of cross-border investments in artificial intelligence, particularly involving Chinese-linked firms. Lawmakers in the United States have already restricted direct American investment in Chinese AI companies, while Beijing has stepped up efforts to discourage domestic tech founders from relocating operations overseas.
The now-blocked deal had drawn attention within global tech circles, especially around the so-called “Singapore-washing” model, where Chinese-founded companies relocate to jurisdictions like Singapore to attract foreign investment while avoiding regulatory pressure from both Beijing and Washington.
Manus, originally founded in China before moving its headquarters to Singapore, develops general-purpose AI agents capable of performing complex tasks such as market research, coding, and data analysis. The startup gained industry attention following the launch of its first product, which some analysts compared to emerging players in advanced AI systems.
The company reported reaching $100 million in annual recurring revenue within eight months of launching its product, positioning it among the fastest-growing startups globally. It also raised $75 million in a funding round led by U.S.-based venture capital firm Benchmark.
When announcing the acquisition last year, Meta said the deal would accelerate its artificial intelligence capabilities, particularly in integrating advanced automation into its consumer and enterprise offerings, including its AI assistant.
However, China’s Ministry of Commerce of the People’s Republic of China had earlier indicated it would review the transaction for compliance with rules governing export controls, technology transfer, and overseas investments.
Reacting to the development, a Meta spokesperson maintained that the deal complied with applicable laws and expressed hope for a resolution.
Meanwhile, Chen Xu, Chairman of the APEC Senior Officials’ Meeting, said it was important for all parties to act in a spirit of mutual benefit, noting that proper handling of such issues could support broader economic cooperation.
The decision underscores increasing geopolitical tensions shaping the global AI landscape, as governments tighten oversight on technology transfers and strategic investments.
