China Orders Meta to Reverse Its Acquisition of Manus

China’s National Development and Reform Commission has mandated that Meta reverse its $2 billion acquisition of Manus, an artificial‑intelligence startup known for autonomous task‑completion agents. The directive follows heightened scrutiny from Chinese regulators over foreign ownership of AI firms that could influence strategic technology sectors. Manus, headquartered in Shanghai, had attracted significant investment from Meta to accelerate its agentic AI capabilities and expand into enterprise automation. The order requires Meta to abandon the deal, effectively nullifying the transaction that was announced in early 2025. The move underscores Beijing’s tightening control over foreign investment in AI and signals a broader push to protect domestic innovation ecosystems. Meta’s stock experienced a modest decline following the announcement, reflecting investor concerns over regulatory risk in China. The decision also highlights ongoing tensions between Washington and Beijing as both nations vie for leadership in emerging AI technologies. The regulatory action is part of a broader pattern of Chinese authorities scrutinizing cross‑border tech deals, particularly those involving AI and data‑intensive applications. The reversal will likely prompt Meta to reassess its strategy for entering the Chinese market and may influence future foreign investment approaches in the region.