A Better Newspaper

## Overview Meta Platforms is set to fully unwind its US$2 billion acquisition of Chinese-founded artificial intelligence platform Manus, more than three months after Beijing blocked the deal on national security grounds (SCMP, [date]). This marks another high-profile decoupling between the US and China in the AI sector. ## Key Details - Meta acquired Manus around December 29 (SCMP). - Beijing blocked the deal on national security grounds roughly three months prior to the unwind announcement (SCMP). - On Tuesday, Manus notified users it would delete data generated by "certain users" on or after December 29 as part of the transition away from Meta ownership (SCMP). ## Significance The collapse of the Manus deal is emblematic of the deepening technological decoupling between the US and China, particularly in AI — an area both governments treat as a matter of national security rather than pure commerce. It underscores how Chinese regulators are willing to block outbound technology sales/acquisitions even when initiated by a major US buyer, mirroring US restrictions on Chinese firms acquiring sensitive American technology. ## Why It Matters For an attorney or dealmaker, this case illustrates the growing bilateral veto power both governments now exercise over cross-border AI/tech M&A. It raises due-diligence and deal-structuring questions for any US-China tech transaction, particularly around data handling, national security review timelines, and reversal/unwind mechanics (including user data deletion obligations). ## Watch For - Whether Manus finds a new acquirer, potentially domestic Chinese or another foreign buyer. - Broader patterns of Beijing blocking outbound AI/tech deals involving Chinese-founded startups. - Knock-on effects for US firms' appetite to acquire Chinese-origin AI technology.