China Kills Meta's $2 Billion Manus AI Deal, Stranding Founders and Rattling Silicon Valley

China's National Development and Reform Commission (NDRC) has blocked Meta's $2 billion acquisition of Manus, an agentic AI startup founded by Chinese engineers that relocated to Singapore before Mark Zuckerberg scooped it up late last year. The move marks one of China's most significant interventions in a cross-border deal, extending well beyond U.S.-China tensions and into the broader AI industry. With no explanation offered, the NDRC ordered both parties to unwind the deal entirely, citing laws and regulations prohibiting foreign investment in the Manus project. Around 100 Manus employees had already moved into Meta's Singapore offices as of March, with CEO Xiao Hong reporting directly to Meta COO Javier Olivan. Complicating the unwind further, Manus CEO Hong and Chief Scientist Yichao Ji are reportedly under exit bans, preventing them from leaving mainland China.