China’s top economic regulator, the National Development and Reform Commission (NDRC), has blocked Meta’s planned $2 billion acquisition of Manus, an AI startup founded by Chinese engineers that later moved to Singapore before being acquired by Meta.
The decision marks one of China’s most notable interventions in a cross-border tech deal, extending beyond U.S.–China tensions into the broader AI industry. For Meta, it threatens its push into the fast-growing AI agents space.
The NDRC gave no detailed explanation, ordering both sides to fully unwind the transaction under existing regulations.
The situation is complicated. Around 100 Manus employees had already transitioned to Meta’s Singapore offices by March, with leadership integrated into Meta’s structure. CEO Xiao Hong now reports to Meta COO Javier Olivan, while key figures including Hong and chief scientist Yichao Ji are reportedly under exit restrictions in China.
Meta maintains the deal followed all applicable laws and expects a resolution.
Founded in 2022, Manus originally operated from Beijing before relocating to Singapore in 2025. Meta moved to acquire the company later that year for an estimated $2–3 billion, aiming to integrate its agent-based AI technology into Meta AI.
However, Manus’ Chinese origins have drawn scrutiny internationally, including concerns in the U.S. over investments tied to Chinese-linked firms, adding another layer of complexity to the blocked deal.