China Blocks Meta’s Purchase of AI Agent Manus

Overview

• China’s National Development and Reform Commission, which announced the decision Monday, barred foreign investment in the Manus deal and ordered the parties to cancel it.
• Meta said the agreement complied with the law and that it expected an appropriate outcome, while the Wall Street Journal reported the company is preparing to abandon the acquisition.
• Manus is an autonomous AI agent built by Beijing‑founded Butterfly Effect that can carry out end‑to‑end tasks such as sorting résumés and booking travel.
• Butterfly Effect shifted key staff to Singapore in mid‑2025, cut some research roles in China, and halted services there, and the Financial Times reported in March that two co‑founders were blocked from leaving China during the review.
• Analysts say the ruling warns that China will keep tight hold of AI it deems sensitive and that relocating to hubs like Singapore offers less protection for cross‑border deals.