China's state planner calls for Meta to unwind its $2 billion acquisition of Manus, a Singaporean AI startup with Chinese roots

China's National Development and Reform Commission issued a statement on Monday prohibiting the foreign investment and asking the parties involved to withdraw the acquisition transaction, citing compliance with laws and regulations.

Manus, founded in China before relocating to Singapore, develops general-purpose AI agents (autonomous AI systems that execute complex tasks such as market research, coding, and data analysis). The company launched its first general AI agent in March of the prior year and had passed $100 million in annual recurring revenue (ARR) in December.

The deal attracted scrutiny from both China and Washington because U.S. lawmakers have prohibited American investors from backing Chinese AI companies directly, while Beijing has sought to discourage Chinese AI founders from moving business offshore. The acquisition drew particular alarm among tech founders and venture capitalists hoping to use the 'Singapore-washing' model to avoid scrutiny from both governments.