China blocks Meta’s $2B Manus deal and orders it unwound, even though Manus employees had already joined Meta’s AI team

China's National Development and Reform Commission blocked Meta's approximately $2B acquisition of AI startup Manus, ordering the parties to unwind the deal despite Manus employees having already joined Meta's AI team and investors having already received payment, leaving it unclear how an unwind would practically work. Beijing's move stems from concerns about the transfer of strategic AI technology to a foreign company, and follows Chinese authorities barring Manus's two co-founders from leaving the country while the deal was under review — a common tactic during Chinese government investigations. The blocked deal illustrates the accelerating decoupling of U.S. and Chinese AI ecosystems, with Chinese founders now caught between losing access to U.S. funding and chips if they stay in China, or inviting Beijing's scrutiny if they redomicile overseas, a strategy that failed for both Manus and previously for TikTok and Shein.