China is reportedly scrutinizing Meta's recent acquisition of the Singapore-based AI startup Manus, valued at over $2 billion, for potential violations of its stringent technology export control regulations.
This rare cross-border deal, involving a U.S. tech giant acquiring a company with Chinese roots, has raised eyebrows in both Beijing and Washington amid escalating tensions in the global AI race.
Background of the Meta-Manus Deal
The acquisition, finalized in late 2025, marks one of the first instances of a major U.S. technology firm purchasing a cutting-edge AI platform with ties to China, as reported by various sources.
Manus, originally founded by individuals with connections to China, has developed advanced AI agent technology that can code, analyze data, and automate workflows, positioning it as a key player in the industry.
China's Technology Export Controls in Focus
Beijing's review centers on whether the transfer of Manus's proprietary AI technology to Meta contravenes China's export control laws, which aim to safeguard national security and technological sovereignty.
Experts suggest that the deal could face pushback if Chinese authorities determine that critical technology has been exported without proper authorization, potentially setting a precedent for future cross-border tech acquisitions.
Geopolitical Implications and Historical Context
Historically, U.S.-China relations have been strained by technology transfer disputes, with both nations imposing strict controls to protect their respective intellectual property and strategic interests.
The Meta-Manus deal comes at a time when the U.S. has tightened outbound investment restrictions on Chinese tech firms, while China has ramped up efforts to prevent the loss of homegrown innovation to foreign entities.
Potential Impact on Global AI Development
If China imposes restrictions or penalties on this acquisition, it could chill future deals involving Chinese-founded startups and U.S. companies, further fragmenting the global AI ecosystem.
Conversely, a successful resolution could demonstrate a pathway for navigating complex geopolitical landscapes, potentially encouraging more collaboration in the tech sector despite current tensions.
What Lies Ahead for Meta and Manus?
Looking to the future, Meta has stated its intention to sever all of Manus's operational ties to China, a move aimed at aligning with U.S. regulations and mitigating geopolitical concerns.
The outcome of China's review, expected in the coming months, will likely influence how global tech giants approach acquisitions of companies with cross-border origins in an increasingly regulated environment.