The Chinese commerce ministry announced on Thursday that it will evaluate Meta’s acquisition of the artificial intelligence startup Manus.
- The Chinese commerce ministry announced on Thursday that it will evaluate Meta’s acquisition of the artificial intelligence startup Manus.
- Speaking in Beijing on Thursday, the Ministry of Commerce affirmed that it will determine whether the deal complies with Chinese...
- Ministry spokesperson He Yadong stated during a routine press briefing that regulators would collaborate across departments to ascertain whether the...
- Beijing has tightened its control over AI agents, models, and associated intellectual property, viewing them as resources with potential national...
Keep reading for the full breakdown on Beijing probe Meta Manus national security — everything you need to know is covered below.
Speaking in Beijing on Thursday, the Ministry of Commerce affirmed that it will determine whether the deal complies with Chinese laws governing data transfers, technology transfers, export regulations, and foreign investment.
The review comes as the California tech giant behind Facebook and Instagram, Meta, agreed to purchase Manus, a Singapore-based company with Chinese roots, for an estimated $2 billion, thereby expanding its AI offerings across its platforms.
Ministry spokesperson He Yadong stated during a routine press briefing that regulators would collaborate across departments to ascertain whether the acquisition conforms with Chinese laws and regulations.
He highlighted that companies engaged in cross-border technology-related transactions and foreign investments must adhere to China’s legal framework.
Manus’s link with China
Manus has Chinese ancestry and is currently based in Singapore. Although Butterfly Effect Pte, a Singaporean company, is behind Manus, its origins lie in Beijing-registered companies established in China a few years ago.
Now, a significant portion of the inquiry focuses on that development. Before the Meta deal was finalised, regulators investigated whether an export licence was required for relocating personnel, data, and core technologies from Beijing to Singapore.
Beijing has tightened its control over AI agents, models, and associated intellectual property, viewing them as resources with potential national security ramifications.
The Manus case will clarify the application of these rules to Chinese-founded startups that relocate abroad before foreign acquisitions.
Manus’ development of AI agent
After releasing its first AI agent in March—a tool capable of tasks such as data analysis, coding, and market research—the startup attracted significant attention.
Manus claimed that its yearly recurring revenue had surpassed $100 million in just eight months, a rate it called unprecedented. After raising $75 million in a funding round led by the American venture capital firm Benchmark in April, the company also drew global attention.
No more Chinese interest in Manus – Meta
Meta has already expressed its opinions about the transaction. Following the acquisition, Meta had announced that there would be “no continuing Chinese ownership interests in Manus AI” and that Manus would stop providing services and conducting business in China. Facebook and Instagram, two of Meta’s platforms, remain blocked in China due to the “Great Firewall.”
Manus stated that it would continue to operate its business in Singapore, where the majority of its staff currently work.
“Manus’ exceptional talent will join Meta’s team to deliver general-purpose agents across our consumer and business products, including in Meta AI,” the company said in a statement in December.
Chinese officials have taken care to present the review as a regulatory, rather than a punitive, process. “The Chinese government consistently supports enterprises in conducting mutually beneficial transnational operations and international technological cooperation in accordance with laws and regulations,” He Yadong said.