Chinese regulators have directed Meta to dismantle its purchase of Manus, an artificial intelligence firm based in Singapore with founders from China. The order arrived on Monday and may discourage other Chinese business leaders from pursuing partnerships abroad.
The National Development and Reform Commission, which handles economic planning and shapes China's approach to AI, announced the prohibition on foreign stakes in Manus. Officials told the involved parties to pull back from the transaction. Questions remain about the practical steps to separate the companies. Meta has noted that its staff and Manus personnel operate as a unified group. Workers from Manus collaborate with Meta employees at the company's Singapore location, said two individuals close to the setup who requested anonymity due to speaking limits.
Background on the Deal
Meta completed the acquisition of Manus last December. In January, Chinese authorities launched a review to check if the move broke rules on foreign investments. They also examined compliance with mandates for approving technology exports. The government flagged these issues early in the year.
Manus operates from Singapore but draws attention due to its Chinese origins. Meta, the parent of Facebook, has poured resources into AI development worldwide. The firm maintains a significant presence in Singapore, including offices that support regional operations. Integration between the teams began soon after the deal closed, blending expertise across projects.
Regulatory Action and Timing
The commission's ruling blocks foreign investment in the startup. It requires steps to undo the ownership change. No details emerged on the exact process for reversal. The announcement precedes a scheduled summit between U.S. President Trump and China's Xi Jinping by a few weeks. Such timing adds layers to international tech relations.
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China maintains strict controls on technology transfers and foreign involvement in key sectors like AI. The National Development and Reform Commission holds authority over these policies. Past cases show the government enforcing reviews on deals with national security implications. This instance fits a pattern of oversight on cross-border tech moves.
Meta's Response
Meta issued a statement claiming full legal compliance in the transaction. The company expects a suitable outcome from the review process. Despite the order, the firm has highlighted the close work between its people and Manus staff. Singapore serves as a hub for both, facilitating joint efforts.
The reporter, Meaghan Tobin, covered this from Taipei, Taiwan. The story updated at 10:08 a.m. ET on April 27, 2026. A photo shows the integrated teams, credited to Jason Henry for The New York Times.
Meta continues heavy investment in AI amid global competition. Firms like OpenAI and Anthropic push new models, fueling an arms race. China positions itself strongly in the field through domestic policies. This ruling underscores tensions in global AI collaborations.
The full effects of the decision stay unclear for now. Observers watch for broader signals to tech partnerships.