China’s National Development and Reform Commission ordered Meta Platforms Inc. to reverse its acquisition of Singapore-based AI startup Manus on Monday. The transaction carried a valuation of approximately $2 billion. Meta completed the deal in late December.
Regulators cited export control and technology transfer laws following a foreign investment review. This decision marks a rare instance of China exercising extraterritorial jurisdiction over two overseas entities.
The order forces an unwinding four months after the deal's completion, creating a hurdle for Meta’s AI ambitions. Legal experts believe the move signals that Beijing will likely block similar future transactions. Meta stated it complied with all applicable laws and hopes for an appropriate resolution.