China's National Development and Reform Commission has blocked Facebook parent company Meta’s acquisition of Manus, an artificial intelligence startup founded by Chinese engineers. The decision comes after months of investigation and marks a significant intervention in the global tech industry.

The move could severely impact Meta’s ambitions in the rapidly growing AI agents market. According to China's NDRC, both parties have been ordered to unwind the deal, with no explanation provided for the decision. Currently, around 100 Manus employees are based at Meta’s Singapore offices, and founders Xiao Hong and Yichao Ji remain under exit bans.

Founded in 2022 by Hong, Ji, and Tao Zhang, Manus relocated its headquarters to Singapore mid-2025 before being acquired for around $2 billion. This background has raised concerns in the United States, where Senator John Cornyn has questioned whether American capital should flow into a Chinese-linked firm.

The acquisition is seen as part of China's broader strategy to control key technologies and maintain technological sovereignty. The decision highlights the growing tension between global tech giants and national interests.