China’s National Development and Reform Commission (NDRC) announced on Monday that it has halted Meta’s $2 billion acquisition of Manus, an AI startup established by Chinese engineers. The company relocated to Singapore before being acquired by Mark Zuckerberg’s Meta late last year.
This decision represents a major intervention by China in a cross-border transaction, impacting not only U.S.-China relations but also the wider AI sector. For Meta, this development could significantly impede its goals in the rapidly evolving AI agents market.
The NDRC has instructed both parties to completely reverse the transaction without providing any specific reasons.
The NDRC stated, “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,” as indicated in their announcement.
The situation is complex. Approximately 100 employees from Manus have already joined Meta’s Singapore offices as of March, with the company’s founders assuming executive roles. CEO Xiao Hong now reports directly to Meta COO Javier Olivan. Manus CEO Hong and Chief Scientist Yichao Ji are reportedly under exit bans, preventing them from leaving mainland China.
A Meta spokesperson told JS, “The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry.”
Manus was founded in 2022 by Hong, Ji, and Tao Zhang. The company moved its headquarters from China to Singapore around mid-2025. Shortly thereafter, Meta expressed interest. In December 2025, Meta announced its acquisition of Manus for an estimated $2 billion to $3 billion, intending to integrate its agent technology into Meta AI.
According to Nikkei Asia, Meta has agreed to acquire the Singapore-based Manus, contingent on a complete severance of Chinese ownership and operations. However, Manus’ origins in China have attracted attention in Washington, where Senator John Cornyn has raised concerns about Benchmark’s investment, questioning the appropriateness of American capital being invested in a company with Chinese ties. JS highlighted these concerns, citing Cornyn’s post on X.
Manus did not respond to JS’s request for comment.
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