As Washington pushes its technology champions to move faster in artificial intelligence, Beijing is making clear that control over cutting edge code, talent and data will not cross borders without scrutiny
Chinese regulators said on Thursday that they would investigate Meta’s acquisition of the artificial intelligence startup Manus, signaling Beijing’s continued scrutiny of advanced technologies it considers strategically sensitive.
Meta, the U.S. technology company, acquired Manus last month as it seeks to expand the use of AI agents across its consumer and enterprise products.
The Ministry of Commerce in Beijing said it would assess whether the transaction complies with Chinese laws governing export controls, technology imports and exports, and overseas investment.
“The Chinese government consistently supports enterprises in conducting mutually beneficial transnational operations and international technological cooperation in accordance with laws and regulations,” He Yadong, a spokesperson for the Ministry of Commerce, said at a press briefing.
The terms of the acquisition were not disclosed. The Wall Street Journal reported, citing people familiar with the matter, that the deal was valued at more than $2 billion.
The Financial Times reported earlier this week that Chinese officials were reviewing the transaction for potential violations related to technology controls. Meta and Manus did not immediately respond to requests for comment.
Manus, now based in Singapore, traces its origins to a Chinese startup known as Butterfly Effect, also called Monica.Im. The company later spun out as a separate entity and relocated to Singapore earlier this year as it pursued international expansion.
The startup drew attention in March after releasing its first AI agent, a tool designed to assist with tasks such as market research, coding and data analysis.
It was quickly touted in some technology circles as a potential successor to DeepSeek, another high profile AI venture.
As part of its expansion, Manus laid off most of its staff in Beijing in July. The company said that following the Meta acquisition it would continue operating from Singapore. In December, Manus said it employed 105 people across Singapore, Tokyo and San Francisco.
The company also reported that it had surpassed $100 million in annual recurring revenue in December, eight months after launching its product. Manus said this made it the fastest startup to reach that milestone from zero revenue.
“Manus’s exceptional talent will join Meta’s team to deliver general-purpose agents across our consumer and business products, including in Meta AI,” Meta said in a statement in December.
Before the acquisition, Manus raised $75 million in a funding round led by the U.S. venture capital firm Benchmark in April.
Analysts said the Chinese review highlights Beijing’s view of advanced AI as a strategic resource.
“China’s probe underlines that [the country] considers advanced AI agents, models and related IP to be strategic assets,” Nick Patience, the AI lead at the Futurum Group, told CNBC.
“The most likely outcome I see is a lengthier approval process and potential conditions around how Manus technology developed in China can be used, rather than an outright block, but the threat of stricter action gives Beijing bargaining power in a high profile, US led acquisition,” he added.
The scrutiny comes as Meta has accelerated its investments in artificial intelligence amid intense competition with rivals such as OpenAI and Google.
In June, Meta invested $14.3 billion for a 49 percent stake in the AI startup Scale AI, bringing its founder and chief executive, Alexandr Wang, into Meta’s leadership ranks. In December, the company also announced plans to acquire the AI wearable startup Limitless.
Meta’s chief executive, Mark Zuckerberg, has increasingly shifted resources away from the company’s long running Fundamental Artificial Intelligence Research unit in favor of more product focused generative AI teams, as Meta seeks to strengthen its Llama family of AI models and speed their integration into commercial products.
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