China Vetoes Meta's $2B Manus Deal After Months-Long Probe

["China's top economic planner, the National Development and Reform Commission (NDRC), has blocked Meta's $2 billion acquisition of Manus, an AI startup founded by Chinese engineers that had relocated to Singapore. The move marks one of China's most significant interventions in a cross-border deal, extending beyond U.S.-China tensions and into the broader AI industry. For Meta, it could deal a serious blow to its ambitions in the fast-moving AI agents space.", "The NDRC ordered both parties to unwind the deal entirely, without offering any explanation.

'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. Around 100 Manus employees had 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.", "The situation is complicated, with Manus CEO Hong and Chief Scientist Yichao Ji reportedly under exit bans, preventing them from leaving mainland China.

A Meta spokesperson said, 'The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry.' Manus did not respond to requests for comment. The company's origins trace back to China, where its founders previously established its parent company, Butterfly Effect, in Beijing in 2022 before relocating to Singapore.", "Meta announced its acquisition of Manus in December 2025 for roughly $2 billion to $3 billion, planning to fold its agent technology directly into Meta AI.

However, the deal drew scrutiny in Washington, where Senator John Cornyn raised concerns about Benchmark's investment in the company, questioning whether American capital should be flowing to a Chinese-linked firm. The NDRC's decision has significant implications for Meta's AI strategy and the global AI industry.", 'The blocked deal highlights the complexities of cross-border investments in the AI sector, particularly when it comes to Chinese companies with ties to the US. As the AI landscape continues to evolve, companies will need to navigate these complex regulatory environments to achieve their goals.']