China's Ministry of Commerce, along with other relevant departments, has initiated a review of Meta Platforms Inc.'s acquisition of Manus, a Singapore-based AI startup founded by Chinese entrepreneurs. The investigation will assess whether the deal adheres to Chinese laws and regulations concerning export controls, technology trade, and foreign investment.
The review comes amidst growing concerns in Beijing about the outflow of AI technology and talent, particularly following Manus' relocation from China to Singapore last summer. This move allowed the U.S. tech giant Meta to pursue the acquisition. However, it also underscored Beijing's unease over the exodus of AI expertise and its determination to maintain oversight of technology transfers.
Spokesperson He Yadong stated that China supports mutually beneficial cross-border operations and international technology cooperation, but stressed that external investment, technology exports, data exports, and cross-border acquisitions must comply with Chinese laws and regulations.
The probe will focus on whether the deal complies with China's export control laws. Although Manus is registered in Singapore, the company developed its AI products in mainland China, potentially giving Chinese authorities legal grounds to scrutinize whether sensitive technologies were transferred abroad. The key issue is whether technologies developed within China, which are subject to export controls, are provided to foreign entities without the necessary permissions.
Manus, which developed its AI products in China, was acquired by Meta for a reported $2.5 billion. The company's AI agent is designed to operate autonomously. Manus released its general AI agent globally on March 6, 2025, which quickly gained traction on social media.
According to reports, Chinese officials are examining whether the relocation of Manus' staff and technology to Singapore, followed by its sale to Meta, required an export license under Chinese law. If Chinese regulators determine that Manus should have obtained an export license to move to Singapore, the startup's founders could face criminal charges, potentially stalling or even scuppering the acquisition entirely.
The review is currently in its early stages. China's Ministry of Commerce will collaborate with relevant departments to conduct an assessment and investigation into the consistency of Meta's acquisition with relevant laws and regulations concerning export controls, technology import and export, and overseas investment.
This scrutiny occurs amidst ongoing technological competition between the United States and China. While the review may not escalate to a formal investigation, it underscores the increasing complexity of cross-border tech mergers and acquisitions. Beijing's evaluation of this deal signals a careful watch over the transfer of advanced AI capabilities, which are viewed as strategically vital, to foreign entities.
