China Orders Unwinding of Meta's Acquisition of Manus, Impacting Cross-Border AI Transactions
China's National Development and Reform Commission (NDRC) has mandated the unwinding of Meta's $2 billion acquisition of AI startup Manus, citing national security concerns. The acquisition, completed in December 2025, is now being reversed as part of China's strategic measures to control AI technology. This decision is part of a broader regulatory pattern where both China and the United States are using national security as a basis to influence AI development and control. The NDRC's intervention is the first of its kind under China's Foreign Investment Security Review Measures, highlighting China's intent to maintain oversight over AI technologies developed within its borders, even if companies relocate abroad.