Chinese authorities have started a review of Meta’s $2bn proposed acquisition of Manus, an AI platform based in Singapore, for potential violations of technology export controls, according to a report by the Financial Times.
Meta, the parent company of Facebook, Instagram and WhatsApp, announced last week that it had reached an agreement to acquire the AI start-up.
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The deal is unusual, as it involves a leading US technology firm purchasing a company with Chinese roots at a time when Washington and Beijing are competing over advanced technologies.
According to the report, China’s commerce ministry is assessing whether the relocation of Manus’s staff and technology to Singapore, followed by the sale to Meta, requires an export licence under Chinese law.
The review remains in its preliminary stages, and there is no indication yet that it will lead to a formal investigation or efforts to block the transaction.
Manus is operated by Butterfly Effect in Singapore. Its primary product was developed partly by its Beijing-based sister company, which continues to be registered in China.
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By GlobalDataExecutive Xiao Hong and other founders established Beijing Butterfly Effect Technology in 2022 before relocating Manus’s operations.
Chinese officials have paid closer attention to the deal due to concerns that it may prompt more start-ups to move abroad in order to avoid domestic regulatory oversight, the publication said.
Despite these concerns, sources indicated that Manus’s AI-powered assistant is not considered core technology vital to China’s national interest, thereby lowering expectations for decisive intervention from central authorities.
Meta has said it intends to continue operating and selling Manus’s software while integrating its technology into Meta’s product portfolio.
The transaction follows Manus’s relocation of its core team from China to Singapore in mid-2025 after securing investment led by US venture capital firm Benchmark.
That financing round had already attracted inquiries from the US Treasury department related to new regulations restricting American investment in Chinese AI companies.
Manus represents an example of increasing cross-border scrutiny faced by technology transactions involving companies with both Chinese connections and global ambitions.
The final decision by Chinese officials regarding the requirement for an export licence may affect whether Meta can complete its purchase or integrate Manus’s AI agent software as planned.
