China's NDRC blocks Meta's $2 billion acquisition of AI startup Manus and orders the deal unwound

China's National Development and Reform Commission (NDRC) issued a decision to block Meta's $2 billion deal to acquire Manus, an AI agent startup designed to autonomously carry out complex tasks such as writing research reports and preparing presentation slides. The NDRC also ordered all parties to unwind the acquisition.

Manus was founded in 2022 as Beijing Butterfly Effect Technology and launched in March of last year. After launch, the startup relocated its top engineers and headquarters from Beijing to Singapore. Meta announced the acquisition in late December, but did not inform Chinese authorities before inking the deal.

Chinese officials began investigating the acquisition in January for potential national security issues and export control violations. The NDRC reportedly ordered Manus co-founders Xiao Hong and Ji Yichao to meet with officials and discuss the acquisition, and both were purportedly asked not to leave China until the review was completed.