China has opened a formal investigation into Meta’s acquisition of artificial intelligence startup Manus, focusing on cross-border deals involving advanced AI technologies.
Speaking in Beijing on Thursday, the Ministry of Commerce confirmed it will assess whether the transaction aligns with Chinese laws covering export regulations, technology transfers, overseas investment and data movement.
The review follows Meta’s agreement to buy Manus in a deal reported to be worth more than $2 billion.
At a regular press briefing, ministry spokesperson He Yadong said regulators would work across departments to determine whether the acquisition complies with existing regulations.
He stressed that companies involved in foreign investment and technology-related transactions must operate within China’s legal framework.
Manus, now based in Singapore, has roots in China. It emerged from Butterfly Effect, also known as Monica.Im, before becoming a standalone company and relocating earlier this year.
That development is now a big part of the investigation. Regulators are examining whether the transfer of staff, data and core technology from Beijing to Singapore required an export licence before the Meta deal was finalised.
Beijing has increased oversight of AI models, agents and related intellectual property, treating them as assets with national security implications.
The Manus case will help clarify how those regulations apply to Chinese-founded startups that move overseas ahead of foreign acquisitions.
The startup received huge attention after launching its first AI agent in March, a tool designed to handle tasks such as market research, coding and data analysis.
Within eight months, Manus said it had crossed $100 million in annual recurring revenue, a pace it described as unprecedented. The company also drew global interest after raising $75 million in a funding round led by U.S. venture capital firm Benchmark in April.
Meta has already made known how it views the deal. “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 been careful to frame the review as regulatory rather than punitive. “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.
