Mark Zuckerberg · Agentic AI · China · Meta · Hong Kong · TechCrunch AI
China blocks Meta’s $2 billion Manus agreement after months-long probe
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China’s top economic planner, the National Development and Reform Commission (NDRC), said on Monday it has blocked Meta’s $2 billion acquisition of Manus, an agentic AI startup founded by Chinese engineers that relocated to Singapore before Mark Zuckerberg scooped it up late last year.
Key facts
- The company announced its acquisition of Manus in December 2025 for roughly $2 billion to $3 billion, with plans to fold its agent technology directly into Meta AI
- China’s top economic planner, the National Development and Reform Commission (NDRC), said on Monday it has blocked Meta’s $2 billion acquisition of Manus, an agentic AI startup founded by Chinese
- Founded in 2022 by Hong, Ji, and Tao Zhang, Manus relocated its headquarters from China to Singapore around mid-2025
- Manus’ founders previously established its parent company, Butterfly Effect, in Beijing in 2022 before relocating to Singapore
Summary
The move marks one of China’s most significant interventions in a cross-border deal, one that extends well beyond U.S.-China tensions and into the broader AI industry. With no explanation offered, China’s NDRC ordered both parties to unwind the deal entirely. “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. But the situation is far from straightforward.