With no explanation offered, China’s NDRC ordered both parties to unwind the deal entirely.

“The National Development and Reform Commission (NDRC) has made a decision to prohibit foreign investment in the Manus project in accordance with laws and regulations, and has required the parties involved to withdraw the acquisition transaction,” it said.

But the situation is far from straightforward. Around 100 Manus employees have already moved into Meta’s Singapore offices as of March, with founders taking on executive roles. CEO Xiao Hong now reports directly to Meta COO Javier Olivan. Manus CEO Hong and Chief Scientist Yichao Ji are reportedly under exit bans, preventing them from leaving mainland China.

“The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry,” a spokesperson at Meta told TechCrunch.