China blocks Meta’s $2B Manus deal after months-long probe
Source: TechCrunch
Background
Meta announced in December 2025 that it would acquire Manus, an agentic‑AI startup founded by Chinese engineers and later relocated to Singapore. The deal was valued at roughly $2 billion to $3 billion and was intended to integrate Manus’s agent technology into Meta AI.
Manus was founded in 2022 by Xiao Hong, Yichao Ji, and Tao Zhang. The team originally operated under the parent company Butterfly Effect in Beijing before moving headquarters to Singapore around mid‑2025.
Regulatory action by China
On Monday, China’s National Development and Reform Commission (NDRC) announced that it blocked the acquisition and ordered both parties to unwind the transaction entirely, citing “laws and regulations” that prohibit foreign investment in the Manus project. The NDRC statement reads:
“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.”
No further explanation was provided.
Current status of Manus staff
- Approximately 100 Manus employees have already moved into Meta’s Singapore offices as of March, with founders taking on executive roles.
- CEO Xiao Hong now reports directly to Meta COO Javier Olivan.
- Both CEO Xiao Hong and Chief Scientist Yichao Ji are reportedly under exit bans, preventing them from leaving mainland China.
Meta’s response
A Meta spokesperson told TechCrunch that “the transaction complied fully with applicable law” and that the company “anticipates an appropriate resolution to the inquiry.”
Political scrutiny in the United States
The acquisition has drawn attention in Washington. Senator John Cornyn raised concerns about Benchmark’s investment in Manus, questioning whether American capital should flow to a firm with Chinese origins. The senator’s comments were highlighted in a TechCrunch report citing his post on X.
Sources
- TechCrunch: Meta just bought Manus, an AI startup everyone has been talking about
- NDRC announcement (Chinese)
- Meta’s announcement of Manus joining its Singapore office
- Reuters report on exit bans for Manus co‑founders
- Benton Institute: Meta buys AI startup Manus for more than $2 billion
- Nikkei Asia: Meta says AI startup Manus to cut China ties after acquisition
- Senator John Cornyn’s X post