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China Blocks Meta's $2 Billion Acquisition of AI Startup Manus, Signaling Major Cross-Border Trade Interference

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The National Development and Reform Commission (NDRC) of China has intervened to block Meta's $2 billion acquisition of Manus, an AI startup with roots in China but headquartered in Singapore. This high-stakes move is one of China's most significant interventions in an international deal, extending beyond U.S.-China tensions into the broader AI industry.

Key Details:

  • On Monday, the NDRC ordered the unwinding of the acquisition without providing a detailed explanation.
  • Manus, founded by CEO Xiao Hong and Chief Scientist Yichao Ji among others in China in 2022, relocated to Singapore mid-2025.
  • The acquisition deal was announced by Meta in December 2025; around 100 Manus employees had already begun integrating into Meta's Singapore offices by March.
  • The founders are currently under exit bans, unable to leave mainland China.
  • There was political skepticism, especially in Washington, with concerns raised by Senator John Cornyn regarding American investments in firms with Chinese origins.
  • The sale would require Manus to completely sever its Chinese ties, aligning with demands from U.S. oversight bodies.