China's NDRC Blocks Meta's $2 B Purchase of AI Startup Manus
Key Points
- China’s NDRC ordered Meta to cancel its $2 billion acquisition of AI startup Manus.
- The regulator gave no public explanation and demanded the deal be unwound.
- Manus, founded by Chinese engineers, moved its headquarters to Singapore in 2025.
- Around 100 Manus staff have already joined Meta’s Singapore office.
- Founders Xiao Hong and Yichao Ji are under exit bans preventing them from leaving mainland China.
- Meta says the transaction complied with law and expects a resolution to the inquiry.
- U.S. Senator John Cornyn previously flagged concerns about Chinese‑linked investment in Manus.
China’s National Development and Reform Commission ordered Meta to unwind its $2 billion acquisition of Manus, an agentic AI firm founded by Chinese engineers and now based in Singapore. The regulator gave no public explanation, demanding the parties pull the deal and imposing exit bans on the startup’s founders. About 100 Manus staff have already moved into Meta’s Singapore offices, and the block threatens Meta’s push into AI agents while raising fresh concerns in Washington about Chinese‑linked technology investments.
Beijing’s top economic planner, the National Development and Reform Commission (NDRC), announced Monday that it has prohibited Meta Platforms from completing its roughly $2 billion purchase of Manus, an agentic artificial‑intelligence startup originally founded by Chinese engineers. The decision forces both sides to unwind the transaction, marking one of the most high‑profile foreign‑investment blocks China has imposed on a cross‑border tech deal.
Manus was created in 2022 by Xiao Hong, Yichao Ji and Tao Zhang. After a brief stint in Beijing, the founders moved the company’s headquarters to Singapore in mid‑2025, seeking a more global foothold. Meta announced the acquisition in December 2025, saying it would fold Manus’s agent‑technology into its own Meta AI division.
According to the NDRC’s statement, the 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.” No further rationale was offered.
About 100 Manus employees have already relocated to Meta’s Singapore office, and the startup’s chief executive, Xiao Hong, now reports directly to Meta’s chief operating officer, Javier Olivan. Both Hong and chief scientist Yichao Ji are subject to exit bans that prevent them from leaving mainland China, a detail that underscores the political sensitivity of the deal.
Meta’s spokesperson told TechCrunch that the transaction complied fully with applicable law and that the company “anticipates an appropriate resolution to the inquiry.” The company has not disclosed any timeline for unwinding the deal or the fate of the employees already on site.
The move adds a new layer to the already tense U.S.–China tech rivalry. Senator John Cornyn has previously raised questions about Benchmark’s investment in Manus, wondering whether American capital should flow to a firm with deep Chinese roots. While the senator’s concerns focus on U.S. policy, the NDRC’s action illustrates Beijing’s willingness to intervene directly in high‑value foreign acquisitions that involve Chinese‑origin technology.
Industry observers note that the block could stall Meta’s ambitions in the fast‑moving AI‑agents space, a sector where rivals such as OpenAI and Google are racing to deploy conversational assistants. If Meta cannot secure the technology it hoped to acquire, it may need to look elsewhere or develop similar capabilities in‑house.
For now, both companies face uncertainty. Manus has not responded to requests for comment, and Meta’s next steps remain unclear as the regulator’s order takes effect.