Xi Tests China’s Regulatory Reach As Beijing Moves To Unwind Meta’s Manus AI Deal

Beijing, 27 April 2026 – China’s decision to block Meta Platforms Inc.’s acquisition of AI startup Manus has turned a completed technology deal into a major test of Beijing’s regulatory reach, signalling that artificial intelligence companies with Chinese origins may remain subject to Chinese scrutiny even after relocating overseas.

The National Development and Reform Commission, China’s powerful state planner, ordered the cancellation of Meta’s reported US$2 billion acquisition of Manus, an agentic AI startup originally founded by Chinese engineers and later based in Singapore. The order came months after the transaction was reportedly sealed, making the case especially significant for global technology investors and cross-border dealmakers.