The Chinese government said on Monday that it would require the unwinding of Meta’s acquisition of Manus, a Singapore-based artificial intelligence company with Chinese founders, in a move that could chill other Chinese entrepreneurs from seeking tie-ups with foreign partners.
Chinese officials had said in January that they were investigating whether Meta’s acquisition of Manus in December violated the country’s rules on foreign investment. They were also assessing whether the deal violated China’s requirements that companies obtain approval for the export of certain technologies.
The National Development and Reform Commission, a high-level ministry that oversees economic planning and plays a central role in setting China’s A.I. policy, said on Monday that it had decided to prohibit foreign investment in Manus, and instructed the parties involved to withdraw the acquisition.
It is not clear how such a transaction would be unwound. Meta has described the two teams as “deeply integrated.” Members of the Manus team have been working alongside Meta colleagues at the company’s office in Singapore, according to two people familiar with the operation who spoke on the condition of anonymity because they were not authorized to talk publicly.
In a statement, Meta said the transaction fully complied with law, adding “We anticipate an appropriate resolution to the inquiry.”
The Chinese government issued its decision just a few weeks before a planned meeting between President Trump and China’s leader, Xi Jinping.