China launches probe into Meta's $2 billion Manus acquisition over technology export concerns

Meta's Manus news is getting different receptions in Washington and Beijing | TechCrunch

Meta's $2 billion acquisition of AI assistant platform Manus is unsurprisingly caught in a regulatory tug-of-war -- but not because of U.S. regulators. They appear assured that the deal is legitimate despite earlier misgivings about Benchmark's investment in Manus. China's regulators, however, are reportedly not quite as sanguine, according to the Financial Times. When Benchmark led a financing round for Manus earlier this year, the investment sparked immediate controversy. U.S. Senator John Cornyn complained about the deal on X, and the investment prompted inquiries from the U.S. Treasury Department around new rules restricting American investment in Chinese AI companies. The concerns were significant enough to spur Manus's eventual relocation from Beijing to Singapore -- part of what drove the company's "step-by-step disentanglement from China," as one Chinese professor described it on WeChat this past weekend. Now the tables have turned. Chinese officials are reportedly reviewing whether the Meta deal violates technology export controls, potentially giving Beijing leverage it wasn't initially perceived as having. Specifically, they're examining whether Manus needed an export license when it relocated its core team from China to Singapore -- a move that's apparently now so common it has earned the nickname "Singapore washing." A recent Wall Street Journal article speculated that China has "few tools to influence the deal given Manus's foothold in Singapore," but that assessment may have been premature. The concern in Beijing is that this deal could encourage more Chinese startups to physically relocate to dodge domestic oversight. Winston Ma, a professor at New York University School of Law and partner at Dragon Capital, told the Journal that if the deal closes smoothly, "It creates a new path for the young AI startups in China." History suggests Beijing could act. China previously used similar export control mechanisms to intervene in Trump's attempted TikTok ban during his first term. The Chinese professor even warned on WeChat that Manus' founders could face criminal liability if they exported restricted technology without authorization. Meanwhile, some U.S. analysts are calling the acquisition a win for Washington's investment restrictions, arguing it shows Chinese AI talent is defecting to the American ecosystem. One expert told the FT that the deal demonstrates "the US AI ecosystem is currently more attractive." It's too early to know if this impacts Meta's plans to integrate Manus's AI agent software into its products, but this $2 billion deal may have gotten more complicated than anyone anticipated.

China Reviews Meta's $2 Billion Deal to Buy AI Startup Manus

Chinese officials are looking into whether Meta Platforms Inc.'s acquisition of artificial intelligence startup Manus violated national security or technology export regulations, an initial review that could hinder the deal down the road if officials determine wrongdoing. Regulators have begun a review of the $2 billion transaction unveiled in December, people familiar with the matter said. Though Manus is now headquartered in Singapore, officials are focusing on AI technology developed by the Chinese-founded company while based in the country, the people said, asking to remain anonymous discussing a sensitive situation. It's unclear whether Beijing will consider Manus's agentic AI technology, designed to help users perform tasks such as booking flights, vital to Chinese national security. The review, first reportedBloomberg Terminal by the Financial Times, is in its early stages and regulators might ultimately choose not to intervene, the people said. In some cases however, such reviews can become formal probes and -- if violations are alleged -- potentially result in penalties or a demand for certain conditions before deal approval, the people said. Beijing has also been scrutinizing ByteDance Ltd.'s sale of TikTok US to American investors, which officials haven't yet formally approved. Representatives for Manus declined to comment. China's commerce ministry and Meta didn't respond to requests for comment. Beijing has in recent years aggressively pushed domestic firms to develop technology to replace American software and circuitry, including in artificial intelligence. Much of that effort however has focused on fundamental hardware such as AI accelerators and other semiconductors. The Meta deal marked a rare US acquisition of an Asian tech company and the latest multibillion-dollar AI bet from Chief Executive Officer Mark Zuckerberg. Manus' AI agent can complete certain general tasks, such as screening resumes, creating trip itineraries and analyzing stocks in response to basic instructions. Manus' parent company, Butterfly Effect Pte, was founded in China before moving to Singapore -- but completed that transition only over the past year or so. The startup has focused on international markets almost from the outset, and its product has never been available in its own country of origin. San Francisco-based venture capital firm Benchmark drew fire in 2025 from US lawmakers and other venture investors for backing an AI company with ties to China.

China to assess, investigate Meta's acquisition of AI startup Manus

BEIJING, Jan 8 (Reuters) - China will assess and investigate Meta's (META.O), opens new tab acquisition of artificial intelligence startup Manus, the Chinese commerce ministry said on Thursday. Companies engaging in activities such as foreign investment, technology exports, data transfers abroad and acquisitions must comply with Chinese laws and regulations, ministry spokesperson He Yadong said at a press briefing. The ministry will work with relevant departments to conduct an assessment and investigation into the consistency of this acquisition with laws and regulations, He said. Reporting by Joe Cash and Jing Xu; Editing by Jacqueline Wong Our Standards: The Thomson Reuters Trust Principles., opens new tab

China to probe Meta's acquisition of artificial intelligence startup Manus

HONG KONG (AP) -- China said on Thursday it would assess and investigate Meta's acquisition of artificial intelligence startup Manus, in a move highlighting its technology rivalry with the U.S.. Meta announced last week it was buying Manus, which is Singapore-based with Chinese roots, as the California tech giant behind Facebook and Instagram expands its AI offerings across its platforms. It is a rare acquisition by a U.S. tech group of an AI company with Chinese roots, at a time of heightened frictions between Washington and Beijing. On Thursday, China's Commerce Ministry spokesperson He Yadong told reporters that it would work with relevant departments to assess and investigate whether Meta's acquisition of Manus is consistent with Chinese laws and regulations. Any enterprises engaging in outward investment, technology export, data transfer and cross-border mergers and acquisitions must comply with Chinese laws, He said. Meta and Manus did not immediately reply to requests for comment. "Security has become the top concern for Chinese policymakers," said Gary Ng, a senior economist for Asia Pacific at investment bank Natixis. "Any tech transfer that could give the U.S. an edge in competitiveness will be heavily scrutinized." While the company behind Manus is Singapore-based Butterfly Effect Pte, its roots can be traced back to Beijing-registered entities which were founded in China a few years ago. Meta said last week there would be "no continuing Chinese ownership interests in Manus AI" following the acquisition, and that Manus would discontinue its services and operations in China. Meta's platforms including Facebook and Instagram are still banned in China under the country's "Great Firewall". Manus said it would continue to operate in Singapore, where most of its employees are now based. Cui Fan, a professor at the University of International Business and Economics in Beijing, raised questions in a public post on the Chinese social media site WeChat over the acquisition's compliance with Chinese laws and technology export controls. "A key question is whether any technologies prohibited or restricted from export under Chinese laws and regulations are exported without a license," he wrote. The "general-purpose" AI agent released by Manus last year can autonomously perform multi-step complex work such as breaking down tasks into smaller steps. It can be used for free but also offers paid subscription packages. Last month, Manus said its annual recurring revenue had reached more than $100 million. ___ Associated Press researcher Shihuan Chen in Beijing contributed to this report.

Meta faces China probe over acquisition of AI agent startup Manus

Chinese officials are reviewing Meta's $2 billion acquisition of AI startup Manus for possible technology control violations, FT reported on Tuesday. China said Thursday it will investigate Meta's $2 billion acquisition of artificial intelligence startup Manus to assess its compliance with export control laws. Meta acquired Singapore-based Manus last month as the U.S. tech giant looks to integrate advanced automation into its consumer and enterprise products. Terms of the acquisition were not disclosed, but the Wall Street Journal reported that the deal closed at an amount over $2 billion, according to sources familiar with the acquisition. China's Ministry of Commerce said it will conduct an assessment and investigation into how the acquisition complies with laws and regulations concerning export controls, technology import and export, and overseas investment, according to a statement translated by Google. "The Chinese government consistently supports enterprises in conducting mutually beneficial transnational operations and international technological cooperation in accordance with laws and regulations," Ministry of Commerce spokesperson He Yadong said at a press briefing. CNBC has contacted Meta for comment.

China Is Investigating Meta's Latest A.I. Acquisition

China is investigating whether Meta's acquisition of the artificial intelligence startup Manus violated its laws on technology exports and outbound investment. Those rules say that the Chinese government must approve the export of certain technologies, including interactive artificial intelligence systems. Manus is based in Singapore but was founded by Chinese engineers and had a Chinese parent company. Beijing has used the same grounds to claim final sign-off on any sale of TikTok's U.S. operations. China's Ministry of Commerce is evaluating whether Meta violated those rules when it acquired Manus last month, He Yadong, a ministry spokesman, said on Thursday. Manus drew attention from Silicon Valley last March when it launched an A.I. agent, or tool, that could be directed to build websites and do other basic coding tasks on its own. At the time, the American tech industry was reeling from the announcement that the Chinese startup DeepSeek had created a high-performing A.I. system for far less than leading U.S. companies had spent. By December, Manus said it had surpassed $100 million in annual recurring revenue. Meta's deal for Manus capped a year of extravagant spending by the Silicon Valley company on artificial intelligence researchers. Last June, Meta made its largest investment since its acquisition of WhatsApp in 2014 when it invested $14.3 billion in Scale AI, a start-up that works with data to train artificial intelligence systems. Meta did not disclose the terms of its acquisition of Manus. China's investigation into the transaction comes as questions swirl in Washington and Beijing about the fate of TikTok's U.S. operations and whether regulators will block Chinese companies from gaining access to A.I. chips made by Nvidia, the American chip maker. Officials in Beijing have pushed companies in China to buy domestic chips and warned that Nvidia's chips may carry risks. For many Chinese tech start-ups, the aspiration is to launch the next global hit product, like TikTok. Yet none want to end up like the Chinese parent of TikTok, ByteDance, which saw its executives questioned before Congress about the company's ties to the Chinese government. The prospect of intense scrutiny from regulators in both Washington and Beijing pushes Chinese entrepreneurs to choose between two paths for growth: catering to the Chinese market or pursuing a global audience outside China. For those without access to international investors, the first is the only feasible option. Chinese officials need to weigh these enterprises' prospects for growth when drawing up the country's technology export regulations, Cui Fan, a professor at the University of International Business and Economics in Beijing, wrote in a blog post. Meta and Manus did not immediately respond to requests for comment. Manus trained its agent using A.I. systems built by other companies including Alibaba of China and Anthropic of the United States. Two of the company's early investors were former employees of Robinhood, the investing app.

China reviews Meta's purchase of AI startup Manus, FT reports

Chinese officials are reviewing Meta's $2 billion acquisition of artificial intelligence startup Manus for possible technology control violations, the Financial Times reported Tuesday, citing two people familiar with the matter. Reuters could not immediately verify the report. Meta and Manus did not immediately respond to requests for comment. Chinese commerce ministry officials began assessing whether the relocation of Manus' staff and technology to Singapore and the consequent sale to Meta required an export license under Chinese law, the report said. While the review is in its preliminary stages and may not lead to a formal investigation, the need for a license could provide Beijing with an avenue to influence the transaction, including, in an extreme case, trying to force the parties to abandon the deal, the report added. Meta acquired Manus last month, when a source familiar with the matter told Reuters that the deal values the Singapore-based firm at between $2 billion and $3 billion. Manus went viral early this year on X after it released what it claimed was the world's first general AI agent, capable of making decisions and executing tasks autonomously, with much less prompting required than AI chatbots such as ChatGPT and DeepSeek.

Meta's big Manus AI purchase hits a Chinese regulatory wall

The Meta-Manus deal was supposed to be simple enough: Meta buys AI agent startup Manus, keeps the service running, and folds the agent into its apps. But now, the complication is geopolitical math. China's Ministry of Commerce says it'll review the purchase for compliance with rules covering tech exports, data moving abroad, and foreign investment, signaling that Manus' "based in Singapore" doesn't automatically mean "beyond Beijing's reach." Meta didn't disclose the terms of the deal when it announced the acquisition late last year, but the deal has been widely valued in the $2 billion to $3 billion range -- a serious price for a company that's basically selling one promise: agents that don't just talk -- they actually do. What Meta is buying is an AI agent -- software pitched as a step beyond chatbots. Manus is built to take a goal ("summarize these documents," "screen these resumes," "plan this trip," "analyze this stock") and then go do the steps: spinning up a virtual workspace, clicking around, running tools, stitching outputs, and delivering something closer to finished work than a smart suggestion -- all of which fits neatly into Meta's obsession with being the default assistant inside messaging and business tooling, an ecosystem where Meta already prints money. Manus has also been loudly signaling traction; it posted that it crossed $100 million in annual recurring revenue eight months after launch, and claimed a $125 million revenue run rate when including use-based revenue. Manus has said that service will continue from Singapore "without changing how Manus works or how decisions are made," but integration into Meta products usually changes something -- even if it's just distribution and policy. So why is Beijing in the middle of Meta's shopping spree? Because Manus' corporate address isn't the whole story. It's based in Singapore, but it was founded in China and has continued roots in the country (continued ties to Beijing and a strategic partnership with Alibaba), putting the company in the category that China is increasingly treating as strategic: advanced AI capability that can be moved, exported, or effectively "transferred" through ownership. The Commerce Ministry's review tees up the questions that matter to a state that treats AI like industrial policy: what counts as an export, what counts as a sensitive transfer, and who gets to approve it. Beijing wants to look at whether this deal triggers Chinese rules around technology exports, cross-border data movement, and foreign investment. Meta's response has been to draw the cleanest line it can: no continuing Chinese ownership interest after the deal and Manus discontinuing services and operations in China. Even if that's enough to satisfy politics in both the U.S. and China, it doesn't automatically answer the question of what counts as an export when the "thing" being exported is a team, a system, and the operational know-how to build agents that can touch real workflows -- strategic development, not normal software. Meta has been spending like an AI superpower and reorganizing like a company that wants faster results. It boosted its 2025 capex outlook to $64 billion to $72 billion, explicitly tied to AI infrastructure and competitiveness. And it's put Alexandr Wang in charge of a newly centralized "superintelligence" effort, a tell that Zuckerberg wants one command center -- and fewer internal bottlenecks -- as Meta tries to ship AI that feels inevitable inside its apps. Buying Manus fits that moment; it's a tangible "agent layer" Meta can plug into Meta AI across its apps while the deeper model race keeps grinding. Increasingly, AI agents are sitting at the intersection of software, data, and labor -- which is why Big Tech is paying up for them and why governments (and regulators) are starting to treat them like something closer to controlled technology than a normal app feature. Meta wanted an agent it could deploy fast. But Beijing wants to decide whether that deployment crosses a regulatory border -- even when the HQ address is outside the country and the product doesn't say "Made in China."

Chinese regulators probe Meta's acquisition of AI startup Manus - SiliconANGLE

Chinese regulators probe Meta's acquisition of AI startup Manus Meta Platforms Inc.'s proposed $2 billion acquisition of the Chinese-founded but now Singapore-based artificial intelligence startup Manus hasn't gone unnoticed. The deal is reportedly being scrutinized by Beijing regulators over alleged export control law violations, but it's unclear whether or not they'd be able to prevent the acquisition from going ahead or not. The Financial Times reported that Chinese authorities are reviewing if the acquisition violates Chinese laws regarding the export of critical technologies, and whether or not Manus needed to secure an export license before making its move to Singapore last year. Manus, which made headlines last March for its AI agent platform that's able to perform complicated tasks such as creating resumes, writing software applications and designing and building websites, moved to Singapore last summer following a $75 million funding round led by the U.S. venture capital firm Benchmark. When that deal was announced, U.S. Senator John Cornyn raised concerns in a post on X, prompting the Treasury Department to investigate if Benchmark had violated rules restricting Americans from investing in Chinese AI firms. As the Wall Street Journal reported, the concerns prompted Manus to relocate to Singapore to avoid the scrutiny, and that move has since been repeated by a number of other Chinese AI startups. Indeed, it has become so common that the practice has been termed "Singapore washing," where companies relocate to avoid geopolitical scrutiny. But China is reportedly not so happy about this trend. Winston Ma, a professor at New York University School of Law and partner at Dragon Capital, told the Financial Times that if Meta is allowed to proceed with the acquisition of Manus, it could encourage more Chinese AI startups to relocate, potentially draining the country of talent. If Chinese regulators decide that Manus should have obtained an export license to move to Singapore, it could mean the startup's founders end up facing criminal charges, potentially stalling or even scuppering the acquisition entirely. This isn't the first time China has resorted to using export control mechanisms to prevent the loss of key technology companies. During U.S. President Donald Trump's first term, it relied on similar laws to intervene in an attempt to ban TikTok. However, Chris McGuire, a senior fellow for China and emerging technologies at the Council on Foreign Relations, told the Financial Times that Meta's acquisition of Manus shows Washington's investment restrictions are proving beneficial because they're forcing China's top AI talents to defect from their home nation in search of better funding opportunities. "The U.S. AI ecosystem is currently more attractive," he said. It's too soon to tell if China has enough leverage to derail Meta's plans to acquire Manus, but the road ahead is likely not going to be as smooth as the company had hoped.

Chinese authorities reviewing Meta $2bn acquisition of Manus - FT

As more Chinese companies relocate to Singapore, Meta's acquisition of one such start-up, Manus, has drawn the attention of authorities in Beijing. It took many by surprise last week when Meta announced it had acquired cutting edge AI start-up Manus for over $2bn. Albeit headquartered in Singapore since 2025, it was still a rare event for a major US technology company to acquire a Chinese-founded start-up - particularly at a time when the US-China relationship is so fraught when it comes to advanced technologies. Now, according to the Financial Times, Chinese authorities are reviewing whether the purchase in some way violates its export control laws. Singapore-based Manus has been at pains for some time to point out that it is not Chinese, but its origins are certainly in China, and now officials there are looking into whether Manus's relocation of its team and technology to Singapore required an export license. Should officials adjudge that such a license was indeed required under Chinese law, then it would offer Beijing a route to influencing - or even halting - the deal, reminiscent of the resistance it demonstrated when the US originally attempted to force the sale of TikTok. Sources told the FT that authorities are concerned at the possibility of its technology companies relocating abroad, but it is a common practice for Chinese companies to at least open a second headquarters in Singapore in a trend that has become known as 'Singapore washing'. In April, Silicon Valley venture capital firm Benchmark joined other investors in a $75m funding round that valued the Chinese-founded AI start-up at $500m. Existing investors are thought to include Tencent Holdings, HSG (formerly Sequoia) and ZhenFund. In March, Manus had previewed its general AI agent which it said could screen CVs, analyse stocks and create travel itineraries as well, if not better than OpenAI's Deep Research. Commentators immediately drew comparisons with the surprise quality of DeepSeek when the Chinese AI agent company released its model in January, as a signal that US AI leadership was under serious attack. It is unsurprising that the acquisition of a high profile AI start up with Chinese roots by a major US player will have irked many in Beijing. Whether it can now do anything about it is a moot point. It may give the Chinese authorities pause for thought regarding the sheer number of its companies that relocate to Singapore in order to evade geopolitical tensions between the world's two largest economies. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

China to probe Meta's acquisition of artificial intelligence startup Manus

HONG KONG (AP) -- China said on Thursday it would assess and investigate Meta's acquisition of artificial intelligence startup Manus, in a move highlighting its technology rivalry with the U.S.. Meta announced last week it was buying Manus, which is Singapore-based with Chinese roots, as the California tech giant behind Facebook and Instagram expands its AI offerings across its platforms. It is a rare acquisition by a U.S. tech group of an AI company with Chinese roots, at a time of heightened frictions between Washington and Beijing. On Thursday, China's Commerce Ministry spokesperson He Yadong told reporters that it would work with relevant departments to assess and investigate whether Meta's acquisition of Manus is consistent with Chinese laws and regulations. Any enterprises engaging in outward investment, technology export, data transfer and cross-border mergers and acquisitions must comply with Chinese laws, He said. Meta and Manus did not immediately reply to requests for comment. "Security has become the top concern for Chinese policymakers," said Gary Ng, a senior economist for Asia Pacific at investment bank Natixis. "Any tech transfer that could give the U.S. an edge in competitiveness will be heavily scrutinized." While the company behind Manus is Singapore-based Butterfly Effect Pte, its roots can be traced back to Beijing-registered entities which were founded in China a few years ago. Meta said last week there would be "no continuing Chinese ownership interests in Manus AI" following the acquisition, and that Manus would discontinue its services and operations in China. Meta's platforms including Facebook and Instagram are still banned in China under the country's "Great Firewall". Manus said it would continue to operate in Singapore, where most of its employees are now based. Cui Fan, a professor at the University of International Business and Economics in Beijing, raised questions in a public post on the Chinese social media site WeChat over the acquisition's compliance with Chinese laws and technology export controls. "A key question is whether any technologies prohibited or restricted from export under Chinese laws and regulations are exported without a license," he wrote. The "general-purpose" AI agent released by Manus last year can autonomously perform multi-step complex work such as breaking down tasks into smaller steps. It can be used for free but also offers paid subscription packages. Last month, Manus said its annual recurring revenue had reached more than $100 million. ___ Associated Press researcher Shihuan Chen in Beijing contributed to this report.

China to probe Meta's acquisition of artificial intelligence startup Manus

HONG KONG -- China said on Thursday it would assess and investigate Meta's acquisition of artificial intelligence startup Manus, in a move highlighting its technology rivalry with the U.S.. Meta announced last week it was buying Manus, which is Singapore-based with Chinese roots, as the California tech giant behind Facebook and Instagram expands its AI offerings across its platforms. It is a rare acquisition by a U.S. tech group of an AI company with Chinese roots, at a time of heightened frictions between Washington and Beijing. On Thursday, China's Commerce Ministry spokesperson He Yadong told reporters that it would work with relevant departments to assess and investigate whether Meta's acquisition of Manus is consistent with Chinese laws and regulations. Any enterprises engaging in outward investment, technology export, data transfer and cross-border mergers and acquisitions must comply with Chinese laws, He said. Meta and Manus did not immediately reply to requests for comment. "Security has become the top concern for Chinese policymakers," said Gary Ng, a senior economist for Asia Pacific at investment bank Natixis. "Any tech transfer that could give the U.S. an edge in competitiveness will be heavily scrutinized." While the company behind Manus is Singapore-based Butterfly Effect Pte, its roots can be traced back to Beijing-registered entities which were founded in China a few years ago. Meta said last week there would be "no continuing Chinese ownership interests in Manus AI" following the acquisition, and that Manus would discontinue its services and operations in China. Meta's platforms including Facebook and Instagram are still banned in China under the country's "Great Firewall". Manus said it would continue to operate in Singapore, where most of its employees are now based. Cui Fan, a professor at the University of International Business and Economics in Beijing, raised questions in a public post on the Chinese social media site WeChat over the acquisition's compliance with Chinese laws and technology export controls. "A key question is whether any technologies prohibited or restricted from export under Chinese laws and regulations are exported without a license," he wrote. The "general-purpose" AI agent released by Manus last year can autonomously perform multi-step complex work such as breaking down tasks into smaller steps. It can be used for free but also offers paid subscription packages. Last month, Manus said its annual recurring revenue had reached more than $100 million. ___ Associated Press researcher Shihuan Chen in Beijing contributed to this report.

China probes Meta's Manus deal over export control concerns

According to Financial Times, Meta agreed to acquire AI assistant platform Manus for $2 billion, drawing approval from U.S. regulators but scrutiny from Chinese officials over potential technology export control violations tied to Manus's relocation of its core team from Beijing to Singapore. Benchmark led a financing round for Manus earlier this year, which immediately triggered controversy in the United States. U.S. Senator John Cornyn publicly criticized the investment on X, highlighting concerns about American funding flowing into Chinese AI firms. This reaction prompted inquiries from the U.S. Treasury Department, focusing on compliance with newly implemented rules that restrict U.S. investments in Chinese artificial intelligence companies. These rules aim to limit financial support for entities deemed sensitive in national security contexts, particularly those advancing AI technologies with potential military applications. The pressure from U.S. authorities contributed to Manus's decision to relocate its core team from Beijing to Singapore. A Chinese professor described this shift on WeChat over the weekend as part of the company's "step-by-step disentanglement from China." This move represented a strategic repositioning, allowing Manus to operate from a jurisdiction outside mainland China while maintaining operational continuity in the Asia-Pacific region. Chinese regulators have now initiated a review of Meta's acquisition to determine if it contravenes technology export controls. The examination centers on whether Manus required an export license when transferring its core team and associated technologies to Singapore. This practice, increasingly adopted by Chinese tech firms seeking international expansion, has been termed "Singapore washing" due to Singapore's role as an intermediary hub that facilitates access to global markets without direct exposure to Beijing's oversight. A recent Wall Street Journal article stated that China possessed "few tools to influence the deal given Manus's foothold in Singapore." Subsequent developments suggest this view underestimated Beijing's regulatory reach, as the export control probe introduces new leverage for intervention. Officials in Beijing worry that approval of the Meta-Manas deal could set a precedent, prompting additional Chinese startups to relocate operations abroad and circumvent domestic regulatory frameworks. Winston Ma, a professor at New York University School of Law and partner at Dragon Capital, told the Journal that if the deal closes smoothly, "It creates a new path for the young AI startups in China." This pathway would involve physical relocation paired with foreign acquisitions to bypass restrictions on technology transfers.

China to Probe Meta's Acquisition of Artificial Intelligence Startup Manus

HONG KONG (AP) -- China said on Thursday it would assess and investigate Meta's acquisition of artificial intelligence startup Manus, in a move highlighting its technology rivalry with the U.S.. Meta announced last week it was buying Manus, which is Singapore-based with Chinese roots, as the California tech giant behind Facebook and Instagram expands its AI offerings across its platforms. It is a rare acquisition by a U.S. tech group of an AI company with Chinese roots, at a time of heightened frictions between Washington and Beijing. On Thursday, China's Commerce Ministry spokesperson He Yadong told reporters that it would work with relevant departments to assess and investigate whether Meta's acquisition of Manus is consistent with Chinese laws and regulations. Any enterprises engaging in outward investment, technology export, data transfer and cross-border mergers and acquisitions must comply with Chinese laws, He said. Meta and Manus did not immediately reply to requests for comment. "Security has become the top concern for Chinese policymakers," said Gary Ng, a senior economist for Asia Pacific at investment bank Natixis. "Any tech transfer that could give the U.S. an edge in competitiveness will be heavily scrutinized." While the company behind Manus is Singapore-based Butterfly Effect Pte, its roots can be traced back to Beijing-registered entities which were founded in China a few years ago. Meta said last week there would be "no continuing Chinese ownership interests in Manus AI" following the acquisition, and that Manus would discontinue its services and operations in China. Meta's platforms including Facebook and Instagram are still banned in China under the country's "Great Firewall". Manus said it would continue to operate in Singapore, where most of its employees are now based. Cui Fan, a professor at the University of International Business and Economics in Beijing, raised questions in a public post on the Chinese social media site WeChat over the acquisition's compliance with Chinese laws and technology export controls. "A key question is whether any technologies prohibited or restricted from export under Chinese laws and regulations are exported without a license," he wrote. The "general-purpose" AI agent released by Manus last year can autonomously perform multi-step complex work such as breaking down tasks into smaller steps. It can be used for free but also offers paid subscription packages. Last month, Manus said its annual recurring revenue had reached more than $100 million. ___ Associated Press researcher Shihuan Chen in Beijing contributed to this report.

China to probe Meta's acquisition of artificial intelligence startup Manus

HONG KONG (AP) -- China said on Thursday it would assess and investigate Meta's acquisition of artificial intelligence startup Manus, in a move highlighting its technology rivalry with the U.S.. Meta announced last week it was buying Manus, which is Singapore-based with Chinese roots, as the California tech giant behind Facebook and Instagram expands its AI offerings across its platforms. It is a rare acquisition by a U.S. tech group of an AI company with Chinese roots, at a time of heightened frictions between Washington and Beijing. On Thursday, China's Commerce Ministry spokesperson He Yadong told reporters that it would work with relevant departments to assess and investigate whether Meta's acquisition of Manus is consistent with Chinese laws and regulations. Any enterprises engaging in outward investment, technology export, data transfer and cross-border mergers and acquisitions must comply with Chinese laws, He said. Meta and Manus did not immediately reply to requests for comment. "Security has become the top concern for Chinese policymakers," said Gary Ng, a senior economist for Asia Pacific at investment bank Natixis. "Any tech transfer that could give the U.S. an edge in competitiveness will be heavily scrutinized." While the company behind Manus is Singapore-based Butterfly Effect Pte, its roots can be traced back to Beijing-registered entities which were founded in China a few years ago. Meta said last week there would be "no continuing Chinese ownership interests in Manus AI" following the acquisition, and that Manus would discontinue its services and operations in China. Meta's platforms including Facebook and Instagram are still banned in China under the country's "Great Firewall". Manus said it would continue to operate in Singapore, where most of its employees are now based. Cui Fan, a professor at the University of International Business and Economics in Beijing, raised questions in a public post on the Chinese social media site WeChat over the acquisition's compliance with Chinese laws and technology export controls. "A key question is whether any technologies prohibited or restricted from export under Chinese laws and regulations are exported without a license," he wrote. The "general-purpose" AI agent released by Manus last year can autonomously perform multi-step complex work such as breaking down tasks into smaller steps. It can be used for free but also offers paid subscription packages. Last month, Manus said its annual recurring revenue had reached more than $100 million. ___ Associated Press researcher Shihuan Chen in Beijing contributed to this report.

China is investigating Meta's latest AI acquisition

China is investigating whether Meta's acquisition of the artificial intelligence startup Manus violated its laws on technology exports and outbound investment. Those rules say that the Chinese government must approve the export of certain technologies, including interactive AI systems. China is investigating whether Meta's acquisition of the artificial intelligence startup Manus violated its laws on technology exports and outbound investment. Those rules say that the Chinese government must approve the export of certain technologies, including interactive AI systems. Manus is based in Singapore but was founded by Chinese engineers and had a Chinese parent company. Beijing has used the same grounds to claim final sign-off on any sale of TikTok's US operations. China's Ministry of Commerce is evaluating whether Meta violated those rules when it acquired Manus last month, He Yadong, a ministry spokesperson, said Thursday. Manus drew attention from Silicon Valley last March when it launched an AI agent, or tool, that could be directed to build websites and do other basic coding tasks on its own. At the time, the American tech industry was reeling from the announcement that the Chinese startup DeepSeek had created a high-performing AI system for far less than leading US companies had spent. By December, Manus said it had surpassed $100 million in annual recurring revenue. Meta's deal for Manus capped a year of extravagant spending by the Silicon Valley company on AI researchers. Last June, Meta made its largest investment since its acquisition of WhatsApp in 2014 when it invested $14.3 billion in Scale AI, a startup that works with data to train AI systems. Meta did not disclose the terms of its acquisition of Manus. China's investigation into the transaction comes as questions swirl in Washington and Beijing about the fate of TikTok's U.S. operations and whether regulators will block Chinese companies from gaining access to AI chips made by Nvidia, the American chipmaker. Officials in Beijing have pushed companies in China to buy domestic chips and warned that Nvidia's chips may carry risks. For many Chinese tech startups, the aspiration is to launch the next global hit product, like TikTok. Yet none want to end up like the Chinese parent of TikTok, ByteDance, which saw its executives questioned before Congress about the company's ties to the Chinese government. The prospect of intense scrutiny from regulators in both Washington and Beijing pushes Chinese entrepreneurs to choose between two paths for growth: catering to the Chinese market or pursuing a global audience outside China. For those without access to international investors, the first is the only feasible option. Chinese officials need to weigh these enterprises' prospects for growth when drawing up the country's technology export regulations, Cui Fan, a professor at the University of International Business and Economics in Beijing, wrote in a blog post. Meta and Manus did not immediately respond to requests for comment. Manus trained its agent using AI systems built by other companies including Alibaba of China and Anthropic of the United States. Two of the company's early investors were former employees of Robinhood, the investing app.

Meta's $2 Billion Manus Acquisition Under Chinese Scrutiny For Possible Export Control Violations: Report - Meta Platforms (NASDAQ:META)

The Chinese government is reportedly reviewing Meta Platforms Inc.'s (NASDAQ:META) recent acquisition of AI firm Manus for potential violations of technology export controls. China Reviews Manus AI Move To Singapore The Chinese Ministry of Commerce is assessing whether Manus' staff and technology relocation to Singapore, followed by the sale to Meta, require an export license under Chinese law, reported the Financial Times on Wednesday. The review, which is still in its early stages, could potentially give Beijing the power to influence the transaction, potentially even forcing the parties to abandon it, according to the report. Manus, operated by Singapore-based Butterfly Effect Pte, was partly developed by its sister company in Beijing, founded in 2022 by CEO Xiao Hong and others. Although still registered in Beijing, its offices were empty as of August, as per the publication. Following a funding round led by U.S. VC Benchmark, which triggered U.S. Treasury scrutiny over new rules on American investment in Chinese AI, Manus relocated to Singapore. Meta did not immediately respond to Benzinga's request for comment. Meta Eyes AI Growth Amid US-China Tech War Meta's acquisition of Manus was seen as a strategic move to expand its AI capabilities. The deal, announced in late December, saw Meta acquire the firm for over $2 billion, with plans to integrate its technology into Meta's own products. The acquisition was part of Meta's broader push into the AI space and gaining an edge over OpenAI, following its acquisition of Scale AI earlier in the year. The Chinese government's review of the Manus deal comes amid an increasingly tense competition between the U.S. and China over advanced technologies. The outcome of this review could have significant implications for Meta's future in the Chinese market and for other companies engaging in similar transactions. Meta holds a momentum rating of 27.15% and a quality rating of 95.60%, according to Benzinga's Proprietary Edge Rankings. Click here to see how it compares to other leading tech companies. Price Action: Over the past year, Meta stock climbed 6.92%, as per data from Benzinga Pro. On Tuesday, it edged 0.28% higher to close at $660.62. Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. METAMeta Platforms Inc$656.94-0.56%OverviewMarket News and Data brought to you by Benzinga APIs

Meta's $2 Billion Manus Deal Meets Regulatory Scrutiny in China | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. The probe will focus on whether the deal complies with China's export control laws, the report said. Meta acquired Singapore-based Manus last month as part of a larger effort to boost its AI offerings. No terms were released, but a report by The Wall Street Journal cited an unnamed source who listed the $2 billion price tag. "Manus is already serving the daily needs of millions of users and businesses worldwide," Meta said in a Dec. 29 announcement. "It launched its first general AI agent earlier this year and has already served more than 147 trillion tokens and created more than 80 million virtual computers. We plan to scale this service to many more businesses." The deal marked one of the most high-profile examples of an American tech giant buying an AI startup with roots in Asia's AI and startup spaces. Manus attracted the support of the Chinese government in March after it debuted an AI agent that could create detailed research reports and build custom websites, using AI models from companies like Anthropic and China's Alibaba, PYMNTS reported Dec. 30. China's Ministry of Commerce is due to conduct an assessment and investigation into how the acquisition meets with laws and regulations regarding export controls, the import and export of technology, and overseas investment, the CNBC report said. "The Chinese government consistently supports enterprises in conducting mutually beneficial transnational operations and international technological cooperation in accordance with laws and regulations," Ministry of Commerce spokesperson He Yadong said at a press briefing, per the CNBC report. Buying Manus gives Meta a "scaled, revenue-generating AI product with direct consumer payments," PYMNTS wrote in a separate Dec. 30 report. While the Facebook owner has invested in AI infrastructure and promoted open-source models via its Llama family of models, monetization has remained indirect, tied largely to advertising and engagement across its social media platforms. "By acquiring Manus, Meta gains technology and distribution, along with immediate exposure to subscription revenue and insight into consumer willingness to pay for AI-powered assistance," the report said. "The transaction also shortens the timeline for rolling out premium AI offerings without having to build a paid user base from scratch."

China reviews Meta's purchase of AI startup Manus: FT

Chinese authorities are reviewing Meta's acquisition of AI startup Manus for possible breaches of technology export rules, the Financial Times reported. Officials are assessing whether moving Manus' staff and technology to Singapore and the consequent sale to Meta required an export licence. The review is at an early stage and may not lead to a formal investigation, but could still affect the deal. Chinese officials are reviewing Meta's $2 billion acquisition of ⁠artificial intelligence startup Manus for possible technology control violations, the Financial Times reported on Tuesday, citing two people familiar with the matter. Reuters could not immediately verify the report. Meta and Manus did not immediately respond to requests for comment. Chinese commerce ministry officials began assessing whether the relocation of Manus' staff and technology to Singapore and the consequent sale to Meta required an export license under Chinese law, the report said. While the review is in its preliminary stages and may not lead to a formal investigation, the need for a license could provide Beijing with an avenue to influence the transaction, including, in an extreme case, trying to force the parties to abandon the deal, the report added. Meta acquired Manus last month, when a source familiar with the matter told Reuters that the deal values the ⁠Singapore-based firm at ⁠between $2 billion and $3 billion. Manus went viral early this year on X after it released what it claimed was the world's first general AI agent, capable of making decisions and executing tasks autonomously, with much less prompting required than AI chatbots such as ChatGPT and DeepSeek.

China to probe Meta's acquisition of artificial intelligence startup Manus

HONG KONG -- China said on Thursday it would assess and investigate Meta's acquisition of artificial intelligence startup Manus, in a move highlighting its technology rivalry with the U.S. Meta announced last week it was buying Manus, which is Singapore-based with Chinese roots, as the California tech giant behind Facebook and Instagram expands its AI offerings across its platforms. It is a rare acquisition by a U.S. tech group of an AI company with Chinese roots, at a time of heightened frictions between Washington and Beijing. On Thursday, China's Commerce Ministry spokesperson He Yadong told reporters that it would work with relevant departments to assess and investigate whether Meta's acquisition of Manus is consistent with Chinese laws and regulations. Any enterprises engaging in outward investment, technology export, data transfer and cross-border mergers and acquisitions must comply with Chinese laws, He said. Meta and Manus did not immediately reply to requests for comment. "Security has become the top concern for Chinese policymakers," said Gary Ng, a senior economist for Asia Pacific at investment bank Natixis. "Any tech transfer that could give the U.S. an edge in competitiveness will be heavily scrutinized." While the company behind Manus is Singapore-based Butterfly Effect Pte, its roots can be traced back to Beijing-registered entities which were founded in China a few years ago. Meta said last week there would be "no continuing Chinese ownership interests in Manus AI" following the acquisition, and that Manus would discontinue its services and operations in China. Meta's platforms including Facebook and Instagram are still banned in China under the country's "Great Firewall". Manus said it would continue to operate in Singapore, where most of its employees are now based. Cui Fan, a professor at the University of International Business and Economics in Beijing, raised questions in a public post on the Chinese social media site WeChat over the acquisition's compliance with Chinese laws and technology export controls. "A key question is whether any technologies prohibited or restricted from export under Chinese laws and regulations are exported without a license," he wrote. The "general-purpose" AI agent released by Manus last year can autonomously perform multi-step complex work such as breaking down tasks into smaller steps. It can be used for free but also offers paid subscription packages. Last month, Manus said its annual recurring revenue had reached more than US$100 million.

China to Review Meta's Manus Deal

China's commerce ministry is reviewing Meta Platforms' more-than $2 billion acquisition of Manus, a Singapore-based artificial-intelligence start-up with Chinese founders. "The Ministry of Commerce, along with relevant departments, will conduct an evaluative investigation into this acquisition," spokesman He Yadong said in a press conference on Thursday. The ministry will assess whether the deal fully complies with China's rules on export controls, technology transfer and foreign investment, He said. Manus and Meta didn't immediately respond to a request for comment. The Financial Times reported on Wednesday that Chinese regulators are reviewing the deal for possible technology-control violations. The acquisition is among the highest-profile examples of a major U.S. tech company buying an AI product developed in Asia's AI and startup ecosystem. Manus gained attention after previewing in March an AI agent capable of producing detailed research reports and building custom websites, using AI models developed by companies such as Anthropic and China's Alibaba Group. Founded by Chinese entrepreneurs, the company has made strategic decisions to distance itself from its Chinese roots. Manus turned down some local governments in China who wanted to invest in the company earlier this year, The Wall Street Journal reported earlier. Manus moved its base to Singapore in mid-2025.

China to assess, investigate Meta's acquisition of AI startup Manus

BEIJING, Jan 8 (Reuters) - China will assess and investigate Meta's acquisition of artificial intelligence startup Manus, the Chinese commerce ministry said on Thursday. Companies engaging in activities such as foreign investment, technology exports, data transfers abroad and acquisitions must comply with Chinese laws and regulations, ministry spokesperson He Yadong said at a press briefing. The ministry will work with relevant departments to conduct an assessment and investigation into the consistency of this acquisition with laws and regulations, He said. (Reporting by Joe Cash and Jing Xu; Editing by Jacqueline Wong)

China reviews Meta's purchase of AI startup Manus, FT reports

Jan 6 (Reuters) - Chinese officials are reviewing Meta's $2 billion acquisition of artificial intelligence startup Manus for possible technology control violations, the Financial Times reported on Tuesday, citing two people familiar with the matter. Reuters could not immediately verify the report. Meta and Manus did not immediately respond to requests for comment. Chinese commerce ministry officials began assessing whether the relocation of Manus' staff and technology to Singapore and the consequent sale to Meta required an export license under Chinese law, the report said. While the review is in its preliminary stages and may not lead to a formal investigation, the need for a license could provide Beijing with an avenue to influence the transaction, including, in an extreme case, trying to force the parties to abandon the deal, the report added. Meta acquired Manus last month, when a source familiar with the matter told Reuters that the deal values the Singapore-based firm at between $2 billion and $3 billion. Manus went viral early this year on X after it released what it claimed was the world's first general AI agent, capable of making decisions and executing tasks autonomously, with much less prompting required than AI chatbots such as ChatGPT and DeepSeek. (Reporting by Gnaneshwar Rajan in Bengaluru; Editing by Rashmi Aich)