China’s Commerce Ministry has initiated a review of Meta Platforms’ acquisition of artificial intelligence startup Manus, underscoring the deepening technology and security tensions between Beijing and Washington.[2]
The deal involves Manus, a fast-growing AI company headquartered in Singapore but with roots in China, and comes as Meta seeks to strengthen its AI capabilities across its major platforms, including Facebook and Instagram.[1][5]
At a regular press briefing, Commerce Ministry spokesperson He Yadong said Beijing will work with other relevant departments to assess and investigate whether the acquisition complies with Chinese laws and regulations.[2]
He highlighted that any company involved in:
must operate in line with Chinese legal and regulatory requirements.[1][2][5]
The review will focus on whether the transfer of technology and data linked to Manus falls under China’s export control and security frameworks, and whether appropriate licenses or approvals are required.
Although Manus is currently based in Singapore, the company’s ownership structure and intellectual property trace back to Beijing-registered entities founded several years ago.[1][5] This Chinese lineage is a central factor attracting regulatory attention.
Manus’ parent company, Butterfly Effect Pte, is registered in Singapore, where most of Manus’ employees are now located.[1][5] Despite this, Chinese officials and academics are scrutinising whether core technologies originated in China and therefore fall under Chinese export controls.
Analysts say the case highlights how national security concerns have become paramount for Chinese policymakers in the context of U.S.–China tech rivalry.[1][5]
Gary Ng, senior economist for Asia Pacific at investment bank Natixis, noted that any technology transfer that could give the U.S. a competitive edge will be heavily scrutinised.[1][5] China has tightened oversight of cross-border data flows and advanced technologies in recent years, especially in sensitive sectors like semiconductors and artificial intelligence.
Cui Fan, a professor at the University of International Business and Economics in Beijing, publicly questioned whether the deal fully complies with China’s technology export and data control rules.[1][5]
In a post on social media platform WeChat, Cui raised the issue of whether any technologies that are prohibited or restricted from export under Chinese law are being transferred to Meta without the necessary licenses.[1][5] This line of questioning aligns with Beijing’s broader effort to prevent unlicensed transfer of strategic technologies abroad.
Meta announced the agreement to acquire Manus as part of its push to expand AI functionalities embedded across its services and products.[1][5] The deal is notable as a rare example of a U.S. tech giant acquiring an AI firm with Chinese roots at a time of heightened geopolitical and regulatory friction.
Meta has stated that once the acquisition is completed there will be no continuing Chinese ownership interests in Manus AI and that Manus will discontinue its services and operations within mainland China.[1][5] Meta’s platforms, including Facebook and Instagram, remain blocked in China under the country’s internet censorship regime, often referred to as the “Great Firewall.”[1][5]
Manus, meanwhile, has said it will continue to operate in Singapore, maintaining its team and business activities there even as it integrates with Meta’s broader AI strategy.[1][5]
Manus is best known for its “general-purpose” AI agent, launched in 2025, which can autonomously perform multi-step, complex tasks by breaking them down into smaller actions and executing them in sequence.[1][5] The tool is available via a free tier, with additional capabilities unlocked through paid subscription packages.[1][5]
According to company statements, Manus recently surpassed $100 million in annual recurring revenue, reflecting strong commercial traction and making it an attractive target for Meta.[1][5]
The Chinese review creates additional uncertainty around timing and conditions for closing the acquisition. While China has not signalled an outright intention to block the deal, regulators are expected to probe:
Meta announced the agreement to acquire Manus as part of its push to expand AI functionalities embedded across its services and products.[1][5] The deal is notable as a rare example of a U.S. tech giant acquiring an AI firm with Chinese roots at a time of heightened geopolitical and regulatory friction.
Meta announced the agreement to acquire Manus as part of its push to expand AI functionalities embedded across its services and products.[1][5] The deal is notable as a rare example of a U.S. tech giant acquiring an AI firm with Chinese roots at a time of heightened geopolitical and regulatory friction.
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