China's National Development and Reform Commission (NDRC) has formally blocked Meta's planned acquisition of AI startup Manus, valued at approximately $2 billion, and ordered both parties to withdraw from the deal, according to TechCrunch and multiple other reports.
Regulatory Action and Immediate Impact
As confirmed by TechCrunch, the NDRC ordered Meta and Manus to cancel the acquisition, citing relevant laws and regulations aimed at curbing foreign investment in sensitive technologies. The deal, announced in December 2025, would have integrated Manus's AI-agent technology into Meta's AI platform. The directive to unwind was issued despite the acquisition being at an advanced stage. Forbes and other sources reported that some executives involved in Manus faced exit bans in China, reflecting the seriousness of the review process.
Bloomberg similarly reported the NDRC's decision to block the acquisition, calling it a surprise move that reverses a controversial deal seen as enabling advanced technology transfer to the United States.
Wider Implications for Cross-Border Deals
The Associated Press noted that the action came amid growing geopolitical tension over AI, suggesting it marks an unexpected escalation in China's stance on cross-border tech transactions. The NDRC issued the directive through its Office of the Working Mechanism for Security Review of Foreign Investment, reinforcing the framing of this move as a security concern.
An analysis from TechSpot adds that the NDRC cited national security concerns when blocking the deal. The Manus AI agent, reportedly capable of assisting with complex tasks such as coding or market research, was viewed as strategically sensitive, contributing to regulators' decision to block the transfer to a U.S. company.
Context and Deal Background
Meta announced its intent to acquire Manus in December 2025 in a deal reportedly worth around $2 billion, aiming to expand its AI-agent capabilities. Manus had Chinese origins but had relocated its headquarters to Singapore prior to the sale, which did not prevent regulatory scrutiny from Beijing.
Reports from Forbes and others indicate that Manus was founded in 2022 in China under Butterfly Effect and later moved operations to Singapore. Despite this, Chinese authorities triggered an investigation in early 2026. Executives were barred from leaving China in March, and by April 27, the acquisition was formally blocked.
Conclusion
This regulatory intervention underscores intensifying Chinese oversight of outbound technology deals, especially involving AI. It demonstrates that even offshore relocations may not sufficiently shield acquisitions from Beijing's security review. For Meta, the cancellation represents a significant setback in its ambition to deploy autonomous AI agents across its platform ecosystem.
Sources:
- TechCrunch – on NDRC blocking the $2 billion acquisition and requiring unwind
- Bloomberg – on China’s surprise move to cancel the Manus deal
- Associated Press – on Beijing’s prohibition of foreign acquisition and withdrawal order
- TechSpot – on national security concerns cited by regulators
- Forbes – on the deal’s background, Manus origins, and executive exit bans