China Initiates Investigation into Meta’s Acquisition of AI Startup Manus
File image of Meta | Image used for representational purposes (Photo Credits: Facebook)
Mumbai, January 8: On January 8, China’s Ministry of Commerce announced the commencement of an inquiry into Meta Platforms’ recent purchase of the artificial intelligence company Manus. This investigation seeks to ascertain potential infractions of China’s export control and technology transfer statutes.
Ministry spokesperson He Yadong confirmed the scrutiny, which aims to determine whether Manus required a formal license from the Chinese government before relocating its personnel and proprietary technology to Singapore, subsequently resulting in the sale to this American tech behemoth.
The transaction, valued at approximately USD 2 billion, signifies a notable instance of a major U.S. technology entity acquiring a prominent AI firm with substantial Chinese affiliations amid an era of escalating technological rivalry between Washington and Beijing.
Understanding the Rationale Behind the Investigation
This inquiry underscores a pivotal escalation in Beijing’s commitment to control the exportation of advanced technological innovations, especially within the swiftly advancing domain of generative AI. Originally established in China under the name Butterfly Effect, Manus relocated to Singapore last summer and garnered international attention for its “general-purpose” AI agent, capable of executing intricate, multi-step operations such as data analysis, coding, and financial research with minimal human intervention.
Central to the probe is the question of whether the transfer of Manus’ essential assets, particularly its algorithms and specialized talent, contravened Chinese regulations updated as recently as July 2025.
These laws necessitate government sanction for the export of sensitive technologies, encompassing data-driven personalized services and AI user interfaces.
Regulators are particularly focused on a phenomenon termed “Singapore washing,” which involves Chinese-founded enterprises relocating their headquarters to the city-state to evade geopolitical tensions and U.S. investment curbs.
The Chinese government has articulated concerns that permitting such transactions to advance unmonitored might facilitate a talent exodus and unauthorized transfer of strategically significant intellectual property to Western rivals.
This investigation further reflects the intensifying “tech cold war” between two of the globe’s preeminent economies.
lthough Meta has indicated that the acquisition ensures “no ongoing Chinese ownership interests,” and that Manus will cease operations within mainland China, Beijing displays palpable apprehension.
Analysts posit that any technology transfer capable of bestowing a competitive advantage upon the U.S. is now perceived as a national security concern by Chinese policymakers.
Should the Ministry of Commerce ascertain that an export license is obligatory, it may acquire the authority to impose hefty fines, demand alterations to the agreement, or, in extreme situations, attempt to inhibit the transaction altogether.
Such actions could significantly complicate Meta’s strategic intentions to incorporate Manus’ advanced AI capabilities into its flagship platforms, including Facebook, Instagram, and WhatsApp.
Founded in 2022, Manus has experienced remarkable acceleration, reportedly achieving over USD 100 million in annual recurring revenue within a mere eight months of its inception.
The startup’s co-founder, Ji Yichao, an eminent figure in the Chinese tech ecosystem, has previously drawn parallels between his own path as a college dropout and that of Meta’s CEO, Mark Zuckerberg.
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