Meta’s recent $2 billion acquisition of AI assistant platform Manus has triggered regulatory unease in Beijing despite receiving little resistance from U.S. authorities.
According to the Financial Times, Chinese regulators have raised concerns that the deal may breach national technology export control laws. Their focus centres on whether Manus followed the required procedures when it shifted key operations out of China.
The controversy around Manus began before Meta’s takeover. In late 2025, when Benchmark led a funding round for the company, the investment drew political attention in Washington. U.S. Senator John Cornyn publicly questioned the deal, prompting the U.S. Treasury Department to examine whether new rules were needed to limit American investments in Chinese AI firms.
Following that scrutiny, Manus moved its core operations from Beijing to Singapore. This step is widely seen as an effort to distance the company from China’s regulatory environment.
Read: Meta Agrees to Acquire AI Agent Manus as Zuckerberg Accelerates AI Push
Chinese authorities are now investigating whether that relocation required an export licence. They are particularly focused on transferring advanced AI expertise and personnel abroad. Regulators have flagged concerns over what they describe as “Singapore washing.” They fear this practice could encourage other Chinese startups to relocate overseas to avoid domestic oversight.
Analysts warn that the outcome of the probe could shape future cross-border AI investments. If regulators allow the deal to proceed without penalties, more Chinese AI firms may seek to establish operations abroad. If Beijing intervenes, it could reinforce tighter controls on technology transfers.
China has used export regulations in the past to influence major tech outcomes. Observers point to Beijing’s role during the attempted ban of TikTok under the administration of Donald Trump as a clear precedent.
For Meta, the investigation adds uncertainty to plans to integrate Manus’s AI capabilities into its broader product ecosystem. While the acquisition remains intact for now, regulatory pressure from China is complicating the situation. What was expected to be a straightforward expansion of Meta’s artificial intelligence strategy is now challenging.
