Manus AI startup returns to independent operation as China forces Meta to unwind two billion dollar acquisition
AI agent startup Manus is set to become independent again after China ordered Meta $META to unwind its roughly $2 billion acquisition. Co-founders have been barred from travel since being summoned to Beijing in March. Users must back up data by August 23 before losing access for
AI agent startup Manus is set to resume operating as an independent company after China's National Development and Reform Commission ordered Meta to unwind its roughly $2 billion acquisition of the firm, citing the country's foreign investment rules. Manus was founded in China in 2022 before relocating to Singapore, and Meta's acquisition closed on December 29, 2025. The Chinese regulator issued its unwind order in April, and Manus co-founders Xiao Hong and Ji Yichao were required to appear before officials in Beijing in March and have since been barred from traveling abroad. As part of the unwind, Manus says some user data generated on or after December 29 must be deleted for regulatory compliance, giving users until August 23 to back up their data before losing access to the platform for two days. Tencent is reportedly in talks to take a controlling stake in the newly independent company. The case sets a precedent that Beijing can force the unwind of a deal even when the acquired company is incorporated offshore, as long as its underlying technology and talent trace back to China, a warning for other Chinese-founded AI startups that have relocated abroad. Sources: CNBC, Bloomberg.