China to Review Meta’s Acquisition of AI Startup Manus
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Chinese regulators will review Meta’s acquisition of Manus. Photo: VCG
China’s Ministry of Commerce said it will launch an assessment into Meta Platforms Inc.’s acquisition of artificial intelligence startup Manus to determine if the deal complies with export control and technology transfer laws.
Ministry spokesperson He Yadong said at a press briefing Thursday that the department would work with relevant agencies to evaluate whether the transaction aligns with regulations governing technology imports and exports, as well as outbound investment.
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- China’s Ministry of Commerce is assessing Meta’s $2 billion acquisition of AI startup Manus for compliance with export control and technology transfer laws.
- Manus, founded in China but now based in Singapore, reached over $100 million in annual recurring revenue within eight months after launching overseas.
- Despite no current operations in China, legal experts say China could intervene due to statutory export restrictions, but enforcement may be challenging.
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Who’s Who
- Meta Platforms Inc.
- China's Ministry of Commerce announced an assessment into Meta Platforms Inc.'s acquisition of AI startup Manus. They will determine if the $2 billion deal, announced December 29, 2025, complies with China's export control and technology transfer laws. This scrutiny highlights complexities in balancing technological innovation and regulation, especially with the entangled nature of AI talent across borders.
- Manus
- Manus is an AI startup founded in 2022 by Chinese entrepreneur Red Xiao Hong. It initially operated in mainland China as an incubation project before launching its AI agent product to overseas markets in March 2025. After facing political pressure in the U.S. due to its Chinese origins, the company relocated to Singapore in July 2025. Manus was acquired by Meta Platforms Inc. in December 2025 for an estimated $2 billion.
- Benchmark
- Benchmark, a U.S. venture capital firm, led a $75 million funding round for Manus in April 2025, valuing the AI startup at $500 million. Benchmark partner Chetan Puttagunta joined Manus's board, overseeing its expansion as the company achieved significant commercial growth and became one of the fastest startups globally to reach $100 million in annual recurring revenue.
- Zhong Lun Law Firm
- Zhong Lun Law Firm is a legal firm with a senior consultant named Jason Jia. Jia provided insights into China's Foreign Trade Law regarding potential intervention in cases of technology transfer. He noted that certain data analysis and user-preference learning technologies could fall under restricted export categories, providing legal grounds for regulatory action.
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What Happened When
- 2022：
- Manus was founded by Chinese entrepreneur Red Xiao Hong and initially operated as an incubation project on the Chinese mainland.
- March 2025：
- Manus launched its AI agent product to overseas markets.
- April 2025：
- Manus raised $75 million in a funding round led by Benchmark, valuing the company at $500 million.
- July 2025：
- Manus relocated its team to Singapore and closed its domestic social media accounts.
- December 29, 2025：
- Meta announced its acquisition of Manus.
- January 8, 2026：
- China’s Ministry of Commerce announced the launch of an assessment into Meta’s acquisition of Manus.
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