China Orders Meta to Unwind $2B AI Startup Acquisition Amid National Security Concerns

China's National Development and Reform Commission (NDRC) has mandated Meta to reverse its December 2025 acquisition of AI startup Manus, citing national security risks. The $2 billion deal, already closed with investor exits completed, now faces an unprecedented unwind order.

The Singapore-based Manus developed advanced AI agents capable of autonomous resume screening and stock analysis website generation. This technological edge triggered Beijing's intervention under new foreign investment restrictions targeting sensitive tech sectors.

While the NDRC statement avoided naming Meta directly, its prohibition on foreign ownership of the Manus project creates a watershed moment for US-China tech investment. The move signals China's accelerating decoupling from Western capital in critical technology domains.