In a significant regulatory move, China's National Development and Reform Commission has ordered Meta to reverse its acquisition of Manus, a Chinese AI startup. This decision highlights the increasing scrutiny of foreign investments in China's burgeoning technology sector, particularly in artificial intelligence. The analytical report published in the material substantiates the following: this action reflects China's commitment to protecting its technological sovereignty and ensuring that critical innovations remain under domestic control.
Commission's Directive Prohibits Foreign Investment
The commission's directive prohibits foreign investment in Manus, compelling both Meta and the startup to withdraw from the acquisition deal, which was initially announced in late December 2025 for approximately $2 billion. This intervention reflects China's stringent approach to safeguarding its domestic AI assets amidst rising geopolitical tensions.
Intensified Regulatory Scrutiny
Following the announcement, regulatory scrutiny intensified in early 2026, resulting in a series of meetings and restrictions imposed on Manus's co-founders. In response to the unfolding situation, Manus has already begun to unwind its operations, including the closure of its offices in China and layoffs of its workforce. This development underscores the strategic importance that Beijing places on controlling AI technologies and maintaining a competitive edge in the global market.
In a related development, several Chinese semiconductor companies have adapted their hardware to integrate with StepFun's advanced AI model, highlighting the ongoing evolution in the tech sector. For more details, see further information.
