China vetoes Meta’s $2B Manus deal after months-long probe

In a significant development for the tech landscape, China's National Development and Reform Commission (NDRC) announced on Monday that it has halted Meta's planned $2 billion acquisition of Manus, an AI startup initially founded by Chinese engineers that has since relocated to Singapore. This decision is a notable example of China's intervention in international business dealings, transcending existing tensions between the U.S. and China, and highlighting the complexities of the global AI industry. This blockade poses a substantial challenge for Meta, as it seeks to expand its presence in the rapidly evolving realm of AI agents. The NDRC has mandated that both parties completely unwind the acquisition, citing compliance with local laws and regulations, though no specific reasons have been disclosed for this decision. As the situation unfolds, it is worth noting that approximately 100 employees from Manus had already transitioned to Meta's Singapore offices as of March, with the startup's founders now occupying executive roles within the company. Manus CEO Xiao Hong has reportedly begun direct reporting to Meta's Chief Operating Officer, Javier Olivan. However, complications arise as both Hong and Chief Scientist Yichao Ji are said to be under exit bans, restricting their travel outside mainland China. A Meta spokesperson expressed confidence in the legality of the transaction and anticipates a favorable resolution to the inquiry. Founded in 2022, Manus moved its headquarters from Beijing to Singapore in mid-2025. Shortly after, in December 2025, Meta announced its intention to acquire the startup for a sum estimated between $2 billion and $3 billion, aiming to integrate Manus' advanced agent technology into its own AI initiatives. The acquisition has drawn scrutiny due to Manus' origins and its connection to China, raising concerns among U.S. lawmakers about foreign investments in technology firms associated with Chinese interests. Senator John Cornyn has previously voiced apprehensions regarding investments like those from Benchmark in Manus, pointing to the implications of American funding supporting a company linked to China. As of now, Manus has not provided any comments regarding the situation.