China’s top economic planner, the National Development and Reform Commission (NDRC), said on Monday it blocked Meta’s $2 billion acquisition of Manus, an agent AI startup founded by Chinese engineers who moved to Singapore before Mark. Zuckerberg got it late last year.
The move marks one of China’s most significant interventions in a cross-border deal that goes beyond US-China tensions and extends to the broader AI industry. For the meta, it could seriously hurt their ambitions in the field of fast-moving AI agents.
Without explanation, China’s NDRC ordered both parties to cancel the contract entirely.
“The National Development and Reform Commission (NDRC) has decided to ban foreign investment in the Manus project in accordance with laws and regulations and has requested the parties involved to withdraw the procurement.” he said.
But the situation is not simple. Around 100 Manus workers have already moved From March, Meta’s Singapore offices, founders take on executive roles. CEO Xiao Hong reports now directly to Meta COO Javier Olivan. Manus is CEO Hong and Chief Scientist Yichao Ji reported under exit bans, preventing them from leaving mainland China.
A spokesperson for Meta told TechCrunch that “the transaction is fully compliant with applicable laws. We await an appropriate resolution of the inquiry.”
Founded in 2022 by Hong, Ji and Tao Zhang, Manus moved its headquarters from China to Singapore in mid-2025. A few months later, Meta knocked on the door. The company announced that it is acquiring Manus in December 2025 for approximately $2-3 billion and plans to incorporate its agent technology directly into Meta AI.
Meta has agreed to acquire Singapore-based AI startup Manus, a deal that calls for a complete exit from Chinese ownership and operations. Nikkei Asia. But the company’s origins go back to China. Manus’ founders previously established their parent company, Butterfly Effect, in Beijing in 2022 before moving to Singapore. The background has attracted attention in Washington, where Senator John Cornyn has already raised concerns about Benchmark’s investment in the company, questioning whether American capital should flow to a Chinese-linked firm, TechCrunch noted. Referring to Corney’s writing in X.
Manus did not respond to TechCrunch’s request for comment.
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