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April 27, 2026 • Kate Park

China Blocks Meta's $2B AI Startup Acquisition

China Blocks Meta's $2B AI Startup Acquisition China Blocks Meta's $2B AI Startup Acquisition China Blocks Meta's $2B AI Startup Acquisition

China Blocks Meta’s $2B Manus Deal After Months-Long Probe

China's National Development and Reform Commission (NDRC) has ordered Meta to unwind its $2 billion acquisition of Manus, an AI startup founded by Chinese engineers that had relocated to Singapore. This decision marks a significant intervention in a cross-border deal and could impact Meta's ambitions in the AI agents space.

Key Developments:

  • NDRC Intervention: China's NDRC has prohibited foreign investment in the Manus project and mandated the unwinding of the acquisition transaction.
  • Meta's Response: A Meta spokesperson stated that the transaction complied fully with applicable law and expressed anticipation for an appropriate resolution.
  • Manus Relocation and Integration: Manus, founded in 2022, relocated its headquarters from China to Singapore in mid-2025. Approximately 100 Manus employees had already moved to Meta's Singapore offices by March 2026, with founders taking on executive roles.
  • Founder Status: Manus CEO Xiao Hong and Chief Scientist Yichao Ji are reportedly under exit bans in mainland China, preventing them from leaving the country.
  • Deal Background: Meta announced the acquisition of Manus in December 2025 for an estimated $2 billion to $3 billion, intending to integrate its agent technology into Meta AI.
  • Regulatory Scrutiny: The deal has faced scrutiny in the U.S., with concerns raised about American capital flowing to Chinese-linked firms.

Implications:

This regulatory action by China presents a potential setback for Meta's strategic push into AI agents. The situation remains complex, with ongoing implications for the involved parties and the broader AI industry.