China’s chief economic planning body, the National Development and Reform Commission, announced on Monday that it has halted Meta’s $2 billion takeover of Manus, an agentic AI startup established by Chinese engineers that later moved its headquarters to Singapore before being acquired by Mark Zuckerberg’s company late last year.
The decision represents one of Beijing’s most notable interventions in a cross-border transaction, reaching beyond U.S.–China geopolitical frictions into the wider artificial intelligence sector.
For Meta, the setback could significantly disrupt its expansion plans in the rapidly evolving AI agents market.
Without providing any reason, China’s NDRC directed the two companies to fully reverse 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 said.
However, the situation is far from simple. About 100 Manus employees had already transitioned into Meta’s Singapore offices by March, with the startup’s founders assuming executive positions.
CEO Xiao Hong now reports directly to Meta COO Javier Olivan.
At the same time, Manus CEO Hong and correct Chief Scientist Yichao Ji are said to be subject to exit bans, barring them from leaving mainland China.
Founded in 2022 by Hong, Ji, and Tao Zhang, Manus shifted its headquarters from China to Singapore around mid-2025. Only a few months later, Meta entered the picture.
In December 2025, the company announced its acquisition of Manus for an estimated $2 billion to $3 billion, with plans to integrate its agent technology into Meta AI.
Meta agreed to acquire the Singapore-based startup on the condition that it fully sever ties with Chinese ownership and operations, according to Nikkei Asia.
However, Manus has deeper roots in China—its founders previously launched its parent company, Butterfly Effect, in Beijing in 2022 before the relocation to Singapore.
