China Blocks Meta Platforms’ Purchase Of A.I. Firm Manus

China’s government in Beijing has called for Meta Platforms (META) to unwind its $2 billion U.S. acquisition of Manus, a Singapore-based artificial intelligence (A.I.) start-up company.

The decision to prohibit foreign investment in Manus, which has links to China, was made in accordance with Chinese laws and regulations.

The National Development and Reform Commission in Beijing said in a statement that it has asked the parties involved to withdraw the acquisition transaction.

The deal has garnered attention from China’s government and U.S. regulators in Washington, D.C., where officials have prohibited American companies from investing in Chinese A.I. firms.

Manus had reportedly hoped to take advantage of the “Singapore-washing” model, where companies relocate from China to the city state to avoid scrutiny from China and America.

Manus, which was founded in China, develops general-purpose A.I. agents and launched its first A.I. model last year that can execute tasks such as coding and data analysis.

The company said it passed $100 million U.S. in annual recurring revenue last December, eight months after launching its first A.I. product.

Manus raised $75 million U.S. in its most recent funding round. The company is privately held and its stock doesn’t trade on a public exchange.

META stock has risen 23% in the last 12 months to trade at $675.05 U.S. per share.