Meta Platforms is preparing ​to unwind its acquisition of artificial ‌intelligence startup Manus after China blocked the ​deal on national security grounds, the ⁠Wall Street Journal reported on Monday, citing people familiar with the matter.

Earlier on Monday, China ‌ordered the US tech major to unwind its $2 billion-plus acquisition of ‌Manus, as Beijing tightens scrutiny of US ‌investment ⁠in domestic startups developing frontier technologies.

According ⁠to the Journal report, the Singapore-based AI startup's investors, which include venture capital firm Benchmark, have already ​received their returns.

Meanwhile, ‌several former Manus investors in Asia, including Tencent, HSG and ZhenFund, are planning to cooperate if Meta proceeds with unwinding ‌the deal, the report said.

Beijing ​has given the two companies a preliminary deadline of several weeks ⁠to reverse the transaction and fully restore Manus's Chinese assets to their original state, ‌the Journal reported, adding that this would include removing any data or technology previously transferred from Meta.

Chinese regulators have also considered imposing penalties on Manus and Meta if the deal cannot be fully ‌rescinded, the report added.

Meta and Manus did not ​immediately respond to a Reuters' request for comment.

The move comes weeks ahead ⁠of a planned mid-May summit in Beijing ⁠between US President Donald Trump and Chinese President Xi Jinping.

China's commerce ministry ‌announced an investigation into the sale in January, days after Meta completed ​the acquisition.

Published on April 28, 2026