Meta begins dismantling $2 billion Manus acquisition following Chinese regulatory order

Meta Platforms has begun dismantling its $2 billion acquisition of Singapore-based AI startup Manus following an unprecedented order from Chinese regulators to reverse the deal. According to Bloomberg reporting, Meta has completed an operational split, ordering employees to stop using Manus tools for internal projects and blocking Manus staff from accessing Meta's internal data systems. Chinese regulators issued the reversal order in April under the country's foreign investment security review mechanism, marking an unusual move to unwind a completed acquisition. Manus, which has Chinese origins but relocated its headquarters to Singapore before Meta's acquisition announcement in December, became a focal point as Beijing tightens controls over technology, talent, and data amid intensifying U.S.-China competition in AI. China has simultaneously introduced new rules effective July 1 that formalize Beijing's authority to intervene in overseas deals involving Chinese investors, technology, and national security concerns, extending its reach beyond mainland China to markets including Taiwan.