China blocks Meta's $2B Manus acquisition after probe

China's National Development and Reform Commission (NDRC) has prohibited Meta from proceeding with its $2 billion purchase of Manus, an AI startup founded by Chinese engineers that moved to Singapore. The NDRC mandated that both parties completely reverse the agreement, referencing laws and regulations without providing additional details. As of March, approximately 100 Manus employees had transitioned to Meta's Singapore offices, with the founders assuming executive positions. CEO Xiao Hong now reports to Meta COO Javier Olivan. Reports indicate that Manus CEO Hong and Chief Scientist Yichao Ji are under exit bans in mainland China. Meta asserts that the deal adheres to relevant laws and anticipates a suitable resolution. Founded in 2022 by Hong, Ji, and Tao Zhang, Manus relocated from China to Singapore around mid-2025. Meta announced the acquisition in December 2025, estimated at $2-3 billion, intending to incorporate Manus's technology into Meta AI. The agreement necessitated a complete exit from Chinese ownership. Manus's parent company, Butterfly Effect, was created in Beijing in 2022 before its relocation to Singapore. Senator John Cornyn has expressed concerns regarding Benchmark's investment in Manus, questioning the flow of American capital to a firm linked to China.