Chinese regulators are examining whether Meta Platforms Inc.’s US$2 billion acquisition of AI start-up Manus violates national security or technology export rules. The early-stage review could potentially delay or complicate the deal if officials find any wrongdoing.
Although Manus is now headquartered in Singapore, Chinese authorities are focusing on AI technology developed by the company when it was still based in China. The start-up’s agentic AI system can perform tasks such as booking flights, screening resumes, creating itineraries, and analyzing stocks, but it is unclear whether Beijing considers this technology critical to national security.
The review, first reported by the Financial Times, remains preliminary, and regulators may ultimately choose not to intervene. However, similar reviews in the past have led to formal investigations, penalties, or conditions being imposed on deal approvals. China has previously scrutinized other high-profile transactions, such as ByteDance Ltd’s sale of TikTok US, which has yet to receive full approval from authorities.
Meta’s acquisition marks a rare US purchase of an Asian tech company and represents CEO Mark Zuckerberg’s latest multi-billion-dollar bet on AI. Manus’ parent company, Butterfly Effect Pte, was founded in China before relocating to Singapore over the past year. The start-up has mainly focused on international markets, and its products have never been offered in China.
The move comes amid Beijing’s push to strengthen domestic technology capabilities and reduce reliance on US software and semiconductors. The acquisition has drawn scrutiny in the US as well; in 2025, venture firm Benchmark faced criticism from lawmakers and investors for backing AI companies with links to China.
