China reviews Meta’s US$2 billion deal to buy AI startup Manus
Beijing has in recent years aggressively pushed domestic firms to develop technology to replace American software and circuitry
CHINESE officials are looking into whether Meta Platforms’ acquisition of artificial intelligence (AI) startup Manus violated national security or technology export regulations, an initial review that could hinder the deal down the road if officials determine wrongdoing.
Regulators have begun a review of the US$2 billion transaction unveiled in December, sources familiar with the matter said. Though Manus is now headquartered in Singapore, officials are focusing on AI technology developed by the Chinese-founded company while based in the country, the sources said, asking to remain anonymous, discussing a sensitive situation.
It’s unclear whether Beijing will consider Manus’s agentic AI technology, designed to help users perform tasks such as booking flights, vital to Chinese national security. The review, first reported by the Financial Times, is in its early stages and regulators might ultimately choose not to intervene, the sources said.
In some cases, however, such reviews can become formal probes and – if violations are alleged – potentially result in penalties or a demand for certain conditions before deal approval, the sources said. Beijing has also been scrutinising ByteDance’s sale of TikTok US to American investors, which officials have not yet formally approved.
Representatives for Manus declined to comment. China’s commerce ministry and Meta did not respond to requests for comment.
Beijing has in recent years aggressively pushed domestic firms to develop technology to replace American software and circuitry, including in AI. Much of that effort, however, has focused on fundamental hardware such as AI accelerators and other semiconductors.
The Meta deal marked a rare US acquisition of an Asian tech company and the latest multibillion-dollar AI bet from chief executive officer Mark Zuckerberg. Manus’ AI agent can complete certain general tasks, such as screening resumes, creating trip itineraries and analysing stocks in response to basic instructions.
Manus’ parent company, Butterfly Effect, was founded in China before moving to Singapore, but completed that transition only over the past year or so. The startup has focused on international markets almost from the outset, and its product has never been available in its own country of origin.
San Francisco-based venture capital firm Benchmark drew fire in 2025 from US lawmakers and other venture investors for backing an AI company with ties to China. BLOOMBERG
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