Manus

AI Agents · China Tech Regulation · M&A

Milestone

Manus resumes independent operations after China blocks Meta's $2B deal

The reversal shows Beijing will retroactively unwind splashy AI acquisitions it deems security risks, not just block them upfront.

• Manus said Tuesday it has formally resumed independent operations, over four months after China's NDRC ordered Meta to unwind its roughly $2 billion acquisition of the AI agent startup.
• Launched in March 2025, Manus builds autonomous AI agents that can browse the web, conduct research, and complete multi-step tasks with limited human input.
• China's National Development and Reform Commission prohibited the deal in April on foreign-investment security grounds and ordered both firms to withdraw it; two Manus co-founders reportedly had their travel restricted around the same time.
• Manus said some users' data generated on or after Dec 29, 2025 — the day Meta's acquisition was announced — was wiped during the separation, with a no-deadline restoration portal now open.
• The saga saw Manus swing from a roughly $500 million valuation to Meta's reported $2 billion buyout within months, before regulators clawed it back to independence.
• Woody Ye, a partner at Junsheng Consulting, told AFP the episode largely reflects that "some startups and their founders don't understand compliance well."
• The reversal is part of Beijing's broader crackdown on 'Singapore-washing,' where Chinese companies relocate abroad to dodge domestic rules while keeping China-developed technology.
• The unwound deal sets a cautionary precedent for Big Tech eyeing Chinese-founded AI startups, showing Beijing will retroactively kill high-profile acquisitions it views as security or capital-flight risks.