China's economic planner blocks Meta's $2 billion acquisition of Manus, an AI startup founded by Chinese engineers

TechCrunch AI · April 27, 2026

AI Summary

•China's National Development and Reform Commission (NDRC) ordered Meta and Manus to unwind the deal entirely, with no explanation given. The move marks one of China's most significant interventions in a cross-border deal.
•Manus was founded in 2022 by Hong, Ji, and Tao Zhang, and relocated its headquarters from China to Singapore around mid-2025. Meta announced the acquisition in December 2025 for roughly $2 billion to $3 billion, planning to fold Manus's agent technology (AI systems that make autonomous decisions) into Meta AI.
•Around 100 Manus employees had already moved into Meta's Singapore offices as of March, with CEO Xiao Hong reporting directly to Meta COO Javier Olivan. Manus CEO Hong and Chief Scientist Yichao Ji are reportedly under exit bans, preventing them from leaving mainland China.
•Meta stated the transaction 'complied fully with applicable law' and anticipated 'an appropriate resolution.' U.S. Senator John Cornyn had previously raised concerns about capital flowing to a Chinese-linked firm.

Get curated AI news from 200+ sources delivered daily to your inbox. Free to use.