In a significant move that has drawn regulatory attention, Mark Zuckerberg's Meta Platforms Inc. has completed its third-largest acquisition by purchasing the artificial intelligence company Manus. The deal, valued at over $2 billion according to the Wall Street Journal, is now under investigation by Chinese authorities.
China Launches Probe into Tech Export Compliance
The Chinese government, through its commerce ministry, has initiated an assessment to determine whether Meta's acquisition of Manus violated national laws concerning technology exports and outbound investment. This development underscores the growing geopolitical complexities surrounding high-tech deals.
Ministry of Commerce spokesperson He Yadong stated that while China supports lawful transnational operations, all companies must adhere to regulations governing foreign investment, technology exports, data transfers, and acquisitions. The probe highlights Beijing's assertive stance in overseeing technology flows, a precedent previously seen in cases like the potential sale of TikTok's US operations by ByteDance.
The Meteoric Rise and Relocation of Manus AI
Manus, an AI startup founded by Chinese engineers, catapulted to global fame in March 2025 with the launch of an autonomous AI agent capable of building websites and performing basic coding tasks. Its innovation drew immediate comparisons to Chinese AI pioneer DeepSeek, which had earlier stunned Wall Street by developing a powerful model at a fraction of the cost of American counterparts.
The company's success was celebrated on Chinese state television, with many analysts dubbing it "China's next DeepSeek." However, months after its breakthrough, Manus joined a wave of Chinese tech firms relocating their headquarters, moving from China to Singapore. This strategic shift is widely viewed as an effort to navigate and mitigate risks arising from the ongoing technological and trade tensions between the United States and China.
Meta's Clarification and the Deal's Intricacies
Following the acquisition announcement, speculation surged regarding Manus's Chinese connections, prompting Meta to issue a clear clarification. A company spokesperson emphasized that "there will be no continuing Chinese ownership interests in Manus AI following the transaction," and confirmed that Manus would discontinue its services and operations within China.
Technical reports, including one from Bloomberg, reveal that Manus trained its AI agent using systems from multiple sources, including China's Alibaba and the US-based Anthropic. The startup's early backing came from two former employees of the trading app Robinhood, highlighting its cross-border investment appeal.
The core issue for Chinese regulators stems from Manus's origins. Despite its current Singaporean base, the company was founded by Chinese nationals and was initially under a Chinese parent company. This gives Beijing grounds to review the transfer of what it may consider domestically developed technology and intellectual property.
Broader Implications for Global Tech M&A
This investigation signals a new frontier in the US-China tech rivalry, where acquisitions become focal points for regulatory scrutiny. It establishes that even companies that restructure their corporate domicile may not easily escape the oversight of their country of origin when sensitive technologies are involved.
For Meta, the probe adds a layer of uncertainty to its strategic investment aimed at bolstering its AI capabilities. The outcome could influence how other global tech giants approach acquisitions of startups with roots in geopolitically sensitive regions. The situation remains fluid, with the international tech community closely watching how Chinese authorities will ultimately rule on this multi-billion dollar deal.
