[DigitalToday reporter Chi-gyu Hwang (황치규)] Chinese regulators have moved to block Meta's effort to acquire AI agent startup Manus.

Chinese authorities ordered the deal treated as if it never happened, the Financial Times and other foreign media reported on April 27 local time.

An organisation under China's National Development and Reform Commission (NDRC) said it had decided, in accordance with laws and regulations, to ban a foreign company from acquiring the Manus project. It did not mention Meta directly or specify the reason for the ban. The authorities said they were asking related parties to terminate and cancel the acquisition deal.

Meta announced an agreement in December last year to acquire Butterfly Effect, the developer of Manus. The deal value was not disclosed, but the Wall Street Journal reported it was worth more than $2 billion.

Manus drew strong interest as soon as it was unveiled in March 2025 and raised $75 million led by Silicon Valley venture capital firm Benchmark.

Manus was founded in Wuhan and Beijing, but moved its headquarters and core engineering team to Singapore and closed its China office to reduce its China profile.

Chinese regulators began an investigation into the deal earlier this year. The decision is fuelling concern that Chinese startups could be blocked from pursuing exits through sales to foreign companies.