NDRC Blocks Meta’s $2 Billion Acquisition of AI Startup Manus

China’s National Development and Reform Commission (NDRC) has prohibited Meta Platforms from acquiring Manus, an AI startup with Chinese origins, citing compliance with Chinese laws but offering no specific explanation.

The Decision

The NDRC’s Office of the Working Mechanism for Security Review of Foreign Investment issued a formal prohibition on the deal, valued at approximately $2 billion. Both parties have been ordered to unwind the transaction. Additionally, CEO Xiao Hong and Chief Scientist Yichao Ji are reportedly subject to exit bans preventing them from leaving mainland China.

Timeline of Events

2022 — Manus was founded in Beijing by Xiao Hong, Yichao Ji, and Tao Zhang.

Mid-2025 — The startup relocated its headquarters to Singapore.

December 2025 (per Source 1) / December 2024 (per Source 2) — Meta announced its planned acquisition of Manus for $2–3 billion. Meta stated the deal would leave no Chinese ownership interests and that Manus would end its operations in China.

January 2025 (Source 2) — China’s Ministry of Commerce announced an investigation into the deal.

March 2025 (Source 1) — Approximately 100 Manus employees had moved into Meta’s Singapore offices, and founders had assumed executive roles.

Reactions

Meta stated that the transaction “complied fully with applicable law” and that it anticipates “an appropriate resolution to the inquiry.”

Manus did not respond to a request for comment. Its website indicated that the deal had been completed.

Analyst Insight

“The move signals China’s willingness to restrict AI talent and technology transfers, mirroring U.S. curbs on Chinese technology companies.”
— Lian Jye Su, Omdia

Broader Context

The prohibition comes less than a month before a planned visit by U.S. President Donald Trump to China. Manus’s origins have also drawn scrutiny in the U.S., with Senator John Cornyn expressing concerns about American capital flowing to a Chinese-linked firm.