📰 China Blocks Meta’s $2 Billion Acquisition of AI Startup Manus
China’s top economic planner, the National Development and Reform Commission (NDRC), announced on Monday that it has formally blocked Meta’s approximately $2 billion acquisition of Manus, an agentic AI startup founded by Chinese engineers that relocated to Singapore before being scooped up by Mark Zuckerberg late last year.
The decision marks one of China’s most significant interventions in a cross-border deal, with implications extending well beyond U.S.-China tensions into the broader AI industry landscape. For Meta, the ruling could deal a serious blow to its ambitions in the fast-moving AI agents space.
The NDRC offered no detailed explanation for its decision, ordering both parties to unwind the transaction entirely. “The National Development and Reform Commission 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,” the commission stated.
However, the situation is far more complex than it appears. As of March, approximately 100 Manus employees had already moved into Meta’s Singapore offices, with founders taking on executive roles. Manus CEO Xiao Hong now reports directly to Meta COO Javier Olivan. According to reports, both Hong and Chief Scientist Yichao Ji are currently 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 Meta spokesperson told TechCrunch.
Manus was founded in 2022 by Hong, Ji, and Tao Zhang. In mid-2025, the company relocated its headquarters from China to Singapore. Months later, Meta approached them, announcing the acquisition in December 2025 for roughly $2-3 billion, with plans to fold Manus’s agent technology directly into Meta AI.
Per Nikkei Asia, Meta agreed to acquire the Singapore-based AI startup, with the deal requiring a full exit from Chinese ownership and operations. However, the company’s origins trace back to China — the founders originally established the parent company, Butterfly Effect, in Beijing in 2022 before relocating to Singapore.
This background has drawn scrutiny in Washington. U.S. Senator John Cornyn has already raised concerns about Benchmark’s investment in the company, questioning whether American capital should be flowing to a Chinese-linked firm.
Manus did not respond to TechCrunch’s request for comment.
Source: TechCrunch - China blocks Meta’s $2B Manus deal after months-long probe