China’s top economic planner, the National Development and Reform Commission (NDRC), announced on Monday that it had blocked Meta’s $2 billion takeover of Manas. Manas is an agent AI startup founded by Chinese engineers and relocated to Singapore before being acquired by Mark Zuckerberg late last year.
The move marks one of China’s most significant interventions in cross-border agreements, extending far beyond U.S.-China tensions and into the broader AI industry. For Meta, it could be a significant blow to its ambitions in the fast-moving AI agent field.
Without explanation, China’s NDRC ordered both sides to completely cancel the agreement.
“The National Development and Reform Commission (NDRC) has decided to prohibit foreign investment in the Manus project in accordance with the law and has requested the parties concerned to withdraw the acquisition transaction,” the ministry said.
However, the situation is far from simple. As of March, around 100 Manas employees had already moved to Meta’s Singapore office, with the company’s founders taking on executive roles. CEO Xiao Hong now reports to Meta COO Javier Oliván. Manas CEO Hong and chief scientist Yichao Ji have reportedly been banned from leaving mainland China.
“The transaction was fully compliant with applicable law. We look forward to an appropriate resolution to the investigation,” a Meta spokesperson told TechCrunch.
Founded in 2022 by Hong, Ji and Tao Zhang, Manas moved its headquarters from China to Singapore around mid-2025. Just a few months later, Meta came knocking. The company announced it would acquire Manus in December 2025 for approximately $2 billion to $3 billion, and plans to incorporate its agent technology directly into Meta AI.
According to Nikkei Asia, Meta has agreed to acquire Singapore-based AI startup Manas, but the deal requires a complete exit from Chinese ownership and operations. However, the company’s origins trace back to China. Manas’ founders previously established parent company Butterfly Effect in Beijing in 2022 before relocating to Singapore. This background has drawn scrutiny in Washington, where Sen. John Cornyn has already expressed concerns about Benchmark’s investment in the company and questioned whether U.S. capital should flow to Chinese-affiliated companies, TechCrunch said, citing Cornyn’s post on X.
Manas did not respond to TechCrunch’s request for comment.
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