China blocks Meta’s $2B Manus deal after months-long probe
Meta's $2B AI agent deal hits a wall as China blocks exit.
China's National Development and Reform Commission (NDRC) has blocked Meta's $2 billion acquisition of Manus, an agentic AI startup founded by Chinese engineers that relocated to Singapore. The NDRC ordered both parties to unwind the deal entirely without explanation, citing laws and regulations. This marks one of China's most significant interventions in a cross-border tech deal, extending beyond U.S.-China tensions into broader AI industry dynamics. For Meta, the block could seriously impact its ambitions in the fast-moving AI agents space, as it had planned to fold Manus's technology directly into Meta AI.
The situation is complicated by the fact that around 100 Manus employees have already moved into Meta's Singapore offices since March, with founders taking on executive roles. CEO Xiao Hong now reports directly to Meta COO Javier Olivan, while CEO Hong and Chief Scientist Yichao Ji are reportedly under exit bans preventing them from leaving mainland China. Meta asserts the transaction complied fully with applicable law and expects an appropriate resolution. Manus, founded in 2022, relocated to Singapore around mid-2025 before Meta's acquisition in December 2025. The deal's Chinese origins have also drawn scrutiny in Washington, with Senator John Cornyn questioning American capital flowing to a Chinese-linked firm.
- China's NDRC blocked Meta's $2B acquisition of AI startup Manus, ordering the deal unwound.
- Around 100 Manus employees have relocated to Meta's Singapore offices; founders face exit bans from China.
- Meta had planned to integrate Manus's agent tech into Meta AI, but the block deals a blow to those plans.
Why It Matters
This signals heightened cross-border tech deal scrutiny, impacting Meta's AI agent ambitions and U.S.-China tech tensions.