China Blocks Meta's $2 Billion Manus Acquisition: AI Startup's Return to Independence and User Data Deletion Timeline

How the Deal Unraveled: A Timeline

Meta announced the acquisition of Manus — a Chinese-founded, Singapore-based AI agent startup — in late December 2025, with an estimated deal value of $2 billion+ . The deal drew immediate scrutiny from Beijing.

• January 2026: China's commerce ministry launched an investigation into whether the deal complied with local laws and regulations .
• March 2026: Chinese authorities barred Manus co-founders Xiao Hong (CEO) and Ji Yichao (Chief Scientist) from leaving the country while regulators investigated whether the sale breached investment regulations .
• April 27, 2026: China's National Development and Reform Commission (NDRC) issued a one-line order blocking the acquisition and forcing Meta to unwind it, stating it would "prohibit foreign investment in Manus in accordance with laws and regulations, and requires the parties involved to withdraw the acquisition transaction" . The NDRC did not specifically name Meta in its statement .

Why Beijing Blocked the Deal

The block reflected Beijing's concerns about the transfer of frontier AI technology to the U.S. amid an intensifying tech war between the two countries . A Meta spokesperson told multiple outlets that the transaction "complied fully with applicable law" and that the company anticipated "an appropriate resolution" .

Broader implications: The decision signals Beijing's expansion of jurisdictional reach over cross-border tech deals and raises the risk profile for global investors seeking to acquire Chinese AI startups . Reuters noted the move "will heighten the risk for global investors looking to invest in advanced tech firms with ties to China" .

Manus's Return to Independent Operations

On August 11, 2026, Manus announced it would "soon resume operating as an independent company" . In a blog post, the company stated: "This is part of our separation from Meta; we must take this step to comply with regulatory requirements in specific parts of the world" .

User Data Deletion Plan & Timeline (Singapore Time)

The separation requires the deletion of data generated by certain affected users during Meta's ownership period. Below is the exact timeline based on Manus's official help center notice and multiple news reports .

Key deadline: Backup must be completed by 7:59 AM SGT on August 23, 2026 (which corresponds to 23:59 UTC on August 22) . Affected users are being notified through the Manus app and by email .

What gets deleted: Data generated by certain affected users on or after December 29, 2025 (the acquisition date) — including task data, enabled connectors, and for some account types, all account data .

Account Categories and Impact

Manus's official help center groups affected accounts into three categories, each with different outcomes :

Type A — Account created before acquisition day, with no active subscription or a subscription started before acquisition day.

• Data (tasks after Dec 29) is deleted
• Subscription is retained

Type B — Account created before acquisition day but subscription started on or after acquisition day.

• Subscription cancelled with pro-rata refunds
• Free continued access until deletion window
• Task data deleted

Type C — Account created or user info changed on or after acquisition day.

• All account data, task data, and subscriptions fully deleted
• Remaining balances automatically refunded within 7 days

Subscriptions for affected accounts are being cancelled, with automatic refunds processed within 7 days . Unaffected users can continue using Manus as usual without taking any action .

What the Broader Regulatory Context Means

The Manus case is part of a broader pattern of Chinese regulatory tightening on cross-border tech deals. The NDRC's order was issued under Beijing's national security review mechanism of foreign investments that came into effect in 2021 . The move caught the attention of global investors, as it demonstrated Beijing's willingness to retroactively block and unwind completed acquisitions involving Chinese-founded AI startups .

For users and investors alike, the Manus saga serves as a cautionary tale about the geopolitical risks embedded in AI technology transfers — and a practical reminder that when regulators step in, user data is often caught in the middle.