Chinese authorities blocked Meta's acquisition of AI company Manus for about $2 billion and imposed exit bans on two of Manus's founders, seen as a case of China's extraterritorial regulations being enforced in practice.
On August 11, 2026, Bloomberg reported that Manus, an AI startup founded by a Chinese team, announced it has officially separated from Meta and resumed independent operations, after Chinese regulators stepped in to halt Meta's acquisition of the company.
China's National Development and Reform Commission's Foreign Investment Security Review Office, in accordance with regulations, banned foreign investment in AI startup Manus, requiring the relevant parties to withdraw the acquisition deal.
According to a report by the UK's Financial Times, after AI company Manus was acquired by Meta, CEO Xiao Hong and chief scientist Ji Yichao returned to Beijing to be questioned and were subsequently told they were not permitted to leave the country.