China orders Meta to unwind its $2 billion acquisition of Manus

China's National Development and Reform Commission has formally ordered Meta to unwind its $2 billion acquisition of Manus, an agentic AI startup co-founded by Chinese nationals and incorporated in Singapore. The cancellation order follows a four-month regulatory process that included exit bans on Manus co-founders Xiao Hong and Ji Yichao. The case has forced a novel regulatory question — whether an AI team constitutes a technology export — and has prompted China to formalize a new policy requiring government approval before Chinese tech companies accept US capital. The ruling sets a precedent affecting any Chinese-founded AI startup considering a US acquisition, regardless of where it is incorporated.