Expert evaluation: China suspends Meta's $2 billion acquisition of Manus: shell swapping, relocation arbitrage to evade regulation, ultimately impossible to achieve goal On April 29th, according to CCTV News, the Office of Foreign Investment Security Review Mechanism has made a decision to prohibit foreign investment from acquiring the Manus project in accordance with the law, requiring the parties involved to cancel the acquisition transaction. Manus was originally developed by the Chinese Butterfly Effect company and went viral overnight after its release in March 2025. In June of the same year, the company relocated its headquarters to Singapore and ceased domestic operations. In December 2025, it was announced to be acquired by Meta in the United States for approximately $2 billion. Researcher Zhou Wei from the Research Institute of the Ministry of Commerce stated that Manus' move of projects to Singapore and sale to American companies through the transfer of funds and enterprises is suspected of intentionally evading regulation. If such practices are not regulated, more companies will follow suit and harm national development interests and security. Xi Jinping emphasized that China has always maintained an open attitude towards foreign investment, but takes a cautious stance towards sensitive investments involving key technologies and data security, and "maliciously evades regulation, ultimately unable to achieve its goals".