Robert TaFounder & CEO, Clarity · Building Hyper-Personalized Agents

China Held Their AI Engineers Hostage to Block a $100M Acquisition

15 Jun 2026 · 2 min

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1:30

In this YouTube excerpt, Robert Ta explains that Meta’s planned $2 billion acquisition of Manus—a Singapore‑based AI startup with Chinese roots—has been halted by Chinese authorities. The National Development and Reform Commission (NDRC) ordered the deal to be unwound, citing compliance with Chinese laws that prohibit foreign investment in certain AI firms. The move follows heightened scrutiny from both Washington, where lawmakers have barred U.S. investors from backing Chinese AI companies, and Beijing, which is increasingly discouraging Chinese AI founders from moving their businesses offshore. Manus had achieved $100 million in annual recurring revenue (ARR) just eight months after launching its product, a milestone it touted as the fastest ever, and had previously raised a $75 million Series round led by Benchmark. Despite Meta’s announcement of the acquisition late last year, China blocked the transaction in January, seized the transferred funds, prevented Manus engineers from leaving the country, and reportedly threatened repercussions for their families. Speaker B adds that the geopolitical pressure underscores China’s hardline stance on foreign takeovers of domestic AI talent.

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We've been saying that Manus was bought by Meta, and Jonathan said they were bought for the team. And I did just look on the side here. It looks like China is trying to block Meta's $2 billion takeover of AI startup Manus, saying, let's see, China's state planner on Monday called for Meta to unwind its $2 billion acquisition of Manus, a Singaporean artificial intelligence startup with Chinese roots. The decision to prohibit foreign investment in Manus was made 'in accordance with laws and regulations,' the National Development and Reform Commission said in a brief statement. It added that it had asked the parties involved to withdraw the acquisition transaction. The deal had attracted scrutiny from both China and Washington, as lawmakers in the US have prohibited American investors from backing Chinese AI companies directly. Meanwhile, Beijing has increased efforts to discourage Chinese AI founders from moving business offshore. So they had reached $100 million in ARR in December, 8 months on from launching a product, which it claimed made it the fastest startup in the world at the time to hit the milestone from $0. They led a $75 million round last year by US venture capital firm Benchmark, and Meta announced the deal late last year. But then this year in January, it looks like China is trying to block them.
Yeah, the geopolitical stuff's pretty interesting. Like China, blocked the transaction after the money had transferred into their bank account. And then they blocked the Manus engineers from leaving the country. And, you know, they've like threatened consequences on their family and stuff like that. China's hardcore, man. Like, you don't disobey them. Yeah.