China Bans Foreign Acquisition of AI Startup Manus; Global Times: No "Long-Arm Jurisdiction"
China has prohibited a foreign entity from acquiring the AI startup Manus, with the Global Times asserting that this decision is a legitimate exercise of regulatory duty, not "long-arm jurisdiction." This follows Meta's 2025 announcement to acquire Manus, an AI company with Chinese origins, which later relocated its headquarters to Singapore. China emphasizes its right to intervene based on the startup's technological, human, and data ties to China, aligning with international trends in strengthening security reviews for strategic technologies.
📋 Article Processing Timeline
- 📰 Published: April 28, 2026 at 16:04
- 🔍 Collected: April 28, 2026 at 16:31 (27 min after Published)
- 🤖 AI Analyzed: April 28, 2026 at 16:37 (6 min after Collected)
Central News Agency
(Central News Agency, Taipei, 28th) China announced yesterday that it prohibits foreign investment from acquiring AI startup Manus, which has a Chinese background. The Global Times' editorial today stated that the relevant measures reflect the Chinese government's fulfillment of its regulatory duties, aligning with international practices of strengthening security reviews in strategic technology fields, and do not constitute "long-arm jurisdiction."
Facebook's parent company, Meta, announced in 2025 its plan to acquire AI startup Manus, which has a Chinese background, for over US$2 billion (approximately NT$62.9 billion).
China's National Development and Reform Commission (NDRC) website announced yesterday that the Office of the Mechanism for Security Review of Foreign Investment in China decided, "in accordance with laws and regulations," to prohibit foreign investment in the Manus acquisition project, requiring the parties involved to cancel the acquisition transaction.
The Global Times stated that Butterfly Effect Company launched Manus in March 2025. Several months later, Manus moved its headquarters to Singapore, significantly reduced its domestic team, retained only core technical personnel, and completely ceased services and operations within China. In December 2025, Meta high-profilely announced the acquisition of Manus.
The editorial pointed out that the biggest question mark regarding this M&A case was Manus, as "an AI company developed relying on Chinese engineers and infrastructure environment, suddenly cutting ties with Chinese elements after receiving US investment." This M&A case also raised questions about "M&A as a recruitment tool," suggesting that the acquisition was actually a means of recruitment.
The editorial stated that because this M&A case involves China, the US, and AI elements, China's decision has drawn external attention, and some "overinterpretations" have emerged.
The editorial stated that although China has not yet disclosed the specific reasons for halting the M&A case, three points are very clear. First, China has the right to intervene in this M&A case in accordance with laws and regulations, and there is absolutely no "long-arm jurisdiction." Although Manus had become a "Singapore company" when Meta announced its acquisition, the core of whether China has the right to intervene does not lie in the company's current registration place or the location of its operating team, "but in its technology, talent, data, and their connection with China, and whether the transaction might endanger China's industrial security and development interests."
The editorial stated that Manus's early R&D was conducted in China, and its core data was sourced from China. These critical characteristics determine that the flow of its personnel, technology, and data must be related to China's interests. According to the "Measures for Security Review of Foreign Investment," the "Catalogue of Technologies Prohibited or Restricted from Export by China," and the newly revised "Foreign Trade Law of the People's Republic of China," the export, cross-border transfer, and related investment activities of such technologies must be subject to security review, evaluation, and approval in accordance with the law. China has a sufficient legal basis to exercise jurisdiction over this transaction.
Second, in recent years, countries have generally strengthened investment security reviews, and China's regulation fully conforms to international common practices. Third, halting this M&A case by no means signifies China tightening its business environment. On the contrary, this action clarifies the security boundaries and enhances foreign investors' long-term confidence.
The editorial stated that AI is the core track of the new round of industrial revolution globally, and China's AI industry has entered a period of rapid development. It hopes that more sci-tech enterprises, including Manus, will find their positions in China and achieve better development and transcendence. (Edited by Chen Kai-yu/Chou Hui-ying) 1150428
Choose to stand with facts, every sponsorship you provide is a force to protect press freedom.
Download the Central News Agency "First-hand News" APP to stay updated with the latest news.
Text, images, and videos on this website may not be reproduced, broadcast, or transmitted publicly without authorization.
(Central News Agency, Taipei, 28th) China announced yesterday that it prohibits foreign investment from acquiring AI startup Manus, which has a Chinese background. The Global Times' editorial today stated that the relevant measures reflect the Chinese government's fulfillment of its regulatory duties, aligning with international practices of strengthening security reviews in strategic technology fields, and do not constitute "long-arm jurisdiction."
Facebook's parent company, Meta, announced in 2025 its plan to acquire AI startup Manus, which has a Chinese background, for over US$2 billion (approximately NT$62.9 billion).
China's National Development and Reform Commission (NDRC) website announced yesterday that the Office of the Mechanism for Security Review of Foreign Investment in China decided, "in accordance with laws and regulations," to prohibit foreign investment in the Manus acquisition project, requiring the parties involved to cancel the acquisition transaction.
The Global Times stated that Butterfly Effect Company launched Manus in March 2025. Several months later, Manus moved its headquarters to Singapore, significantly reduced its domestic team, retained only core technical personnel, and completely ceased services and operations within China. In December 2025, Meta high-profilely announced the acquisition of Manus.
The editorial pointed out that the biggest question mark regarding this M&A case was Manus, as "an AI company developed relying on Chinese engineers and infrastructure environment, suddenly cutting ties with Chinese elements after receiving US investment." This M&A case also raised questions about "M&A as a recruitment tool," suggesting that the acquisition was actually a means of recruitment.
The editorial stated that because this M&A case involves China, the US, and AI elements, China's decision has drawn external attention, and some "overinterpretations" have emerged.
The editorial stated that although China has not yet disclosed the specific reasons for halting the M&A case, three points are very clear. First, China has the right to intervene in this M&A case in accordance with laws and regulations, and there is absolutely no "long-arm jurisdiction." Although Manus had become a "Singapore company" when Meta announced its acquisition, the core of whether China has the right to intervene does not lie in the company's current registration place or the location of its operating team, "but in its technology, talent, data, and their connection with China, and whether the transaction might endanger China's industrial security and development interests."
The editorial stated that Manus's early R&D was conducted in China, and its core data was sourced from China. These critical characteristics determine that the flow of its personnel, technology, and data must be related to China's interests. According to the "Measures for Security Review of Foreign Investment," the "Catalogue of Technologies Prohibited or Restricted from Export by China," and the newly revised "Foreign Trade Law of the People's Republic of China," the export, cross-border transfer, and related investment activities of such technologies must be subject to security review, evaluation, and approval in accordance with the law. China has a sufficient legal basis to exercise jurisdiction over this transaction.
Second, in recent years, countries have generally strengthened investment security reviews, and China's regulation fully conforms to international common practices. Third, halting this M&A case by no means signifies China tightening its business environment. On the contrary, this action clarifies the security boundaries and enhances foreign investors' long-term confidence.
The editorial stated that AI is the core track of the new round of industrial revolution globally, and China's AI industry has entered a period of rapid development. It hopes that more sci-tech enterprises, including Manus, will find their positions in China and achieve better development and transcendence. (Edited by Chen Kai-yu/Chou Hui-ying) 1150428
Choose to stand with facts, every sponsorship you provide is a force to protect press freedom.
Download the Central News Agency "First-hand News" APP to stay updated with the latest news.
Text, images, and videos on this website may not be reproduced, broadcast, or transmitted publicly without authorization.