China Blocks Meta’s $2B Acquisition of AI Agent Startup Manus
By James Dargan · · 1 min read
China’s National Development and Reform Commission has ordered Meta and agentic AI startup Manus to unwind their $2 billion acquisition, marking one of Beijing’s most significant interventions in a cross-border AI deal. No explanation was provided for the decision.
Meta announced the acquisition of Singapore-based Manus in December 2025, seeking to integrate its agent technology into Meta AI. Founded in 2022 by Xiao Hong, Yichao Ji, and Tao Zhang, Manus originally operated under parent company Butterfly Effect in Beijing before relocating to Singapore around mid-2025.
The ruling complicates an already entangled situation. Around 100 Manus employees had already moved into Meta’s Singapore offices, with Hong reporting directly to Meta chief operating officer Javier Olivan. Hong and chief scientist Ji are reportedly subject to exit bans preventing them from leaving mainland China.
Meta said the transaction had complied fully with applicable law and anticipated an appropriate resolution. The deal had also attracted scrutiny in Washington, where Senator John Cornyn questioned whether American capital should flow to a Chinese-linked firm.
