Chinese Regulators Review Manus AI Acquisition

The Chinese office controlling foreign investments canceled an agreement involving Butterfly Effect on April 27. The company had previously moved to Singapore to facilitate a deal with Meta following its acquisition of Manus last December. The cancellation occurred amid ongoing technological trade tensions between the United States and China. Reuters reports that Nita may be renouncing the acquisition. The move is interpreted as a signal to Chinese firms against transferring headquarters abroad and a warning to US investors. A regulatory decision has prohibited the acquisition of Mata and required the parties involved to revoke the transaction. China's National Development and Reform Commission has issued a decision to prohibit the acquisition of MATA and requires the parties to rescind the transaction. The regulator cited concerns regarding the circumvention of oversight following the 2025 announcement of a $2 billion acquisition attempt. MATA was launched in March 2025 with a core technical team of Chinese engineers before shifting operations to Singapore and reducing domestic staff. This marks the first time since the implementation of the Foreign Investment Security Review Measures in 2021 that the NDRC has publicly prohibited an investment and ordered a transaction reversal in the AI sector. The move involves a company that relies on Chinese engineers and occurs amid intensifying international competition in the artificial intelligence sector. Analysts suggest the decision may serve as a demonstration case regarding foreign acquisitions in the Chinese AI industry.