China’s National Development and Reform Commission (NDRC) announced it has blocked Meta’s $2 billion purchase of Manus, an AI startup founded by Chinese engineers that moved to Singapore prior to its acquisition by Mark Zuckerberg last year.
This decision represents a significant intervention by China in a cross-border deal, impacting the broader AI industry beyond just U.S.-China tensions. For Meta, this could hinder its goals in the rapidly evolving AI agents sector.
Without offering any explanation, China’s NDRC instructed both parties to completely unwind the transaction.
“The National Development and Reform Commission (NDRC) 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,” it stated.
However, the situation is complex. Around 100 Manus employees have already integrated into Meta’s Singapore offices as of March, with founders assuming executive roles. CEO Xiao Hong reports directly to Meta COO Javier Olivan. Additionally, Manus CEO Hong and Chief Scientist Yichao Ji are reportedly 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.
Founded in 2022 by Hong, Ji, and Tao Zhang, Manus relocated its headquarters from China to Singapore in mid-2025. Shortly after, Meta acquired the company in December 2025 for approximately $2 billion to $3 billion, with plans to integrate its agent technology into Meta AI.
Meta’s acquisition agreement with Singapore-based Manus requires a complete exit from Chinese ownership and operations, according to Nikkei Asia. Manus’ origins in China, where its founders initially established its parent company, Butterfly Effect, in Beijing in 2022 before moving to Singapore, have drawn scrutiny in Washington. Senator John Cornyn raised concerns about American investment in a Chinese-linked company, as highlighted by TechCrunch citing his post on X.
Manus did not respond to TechCrunch’s request for comment.