China Reviews Meta Manus Acquisition
China Reviews Meta Manus Acquisition as MOFCOM assesses export-control compliance, raising closing risk for the deal and for cross-border AI deals.
KEY TAKEAWAYS
- MOFCOM said it will assess and investigate Meta's acquisition of Manus under China's export-control rules.
- Review focuses on whether relocating Manus' team and technology to Singapore required an export license.
- The assessment raises geopolitical and regulatory risk that could delay or alter closing and integration plans.
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China’s Ministry of Commerce (MOFCOM) announced on Jan. 6, 2026, it will assess and investigate Meta Platforms Inc.’s acquisition of Manus, focusing on whether relocating Manus’ team and technology to Singapore complied with Chinese export-control rules. This formal review introduces regulatory risk to the transaction and could affect how cross-border AI deals involving Chinese-origin technology are structured.
MOFCOM Review Raises Regulatory Risk
MOFCOM’s review centers on whether moving Manus’ core staff and technology to Singapore, followed by the sale to Meta, required an export license under Chinese law. China’s export-control regime offers authorities a legal tool that could influence the transaction, including potential pressure to abandon or modify the deal terms. Analysts compare this to Beijing’s earlier use of export controls in disputes linked to U.S. concerns about TikTok.
U.S. authorities previously scrutinized a financing round in Manus led by Benchmark under emerging outbound-investment rules targeting Chinese AI companies. Despite this, U.S. regulators reportedly remain confident in the acquisition’s legitimacy and have not challenged the Meta deal.
Manus Technology and Relocation
Manus, a Singapore-based artificial intelligence startup founded by Chinese entrepreneurs, originally operated in Beijing and Wuhan. The company develops a general AI agent platform designed to autonomously execute tasks with less prompting than conventional chatbots. Manus gained attention in March 2025 after releasing what it described as the world’s first general AI agent.
By mid-June 2025, Manus had relocated its core operations to Singapore, reportedly laying off some China-based staff and closing its Chinese social-media accounts. Observers describe this as a gradual disentanglement from China, part of a broader trend sometimes called “Singapore washing.” Meta agreed to acquire Manus in December 2025 in a transaction valued at more than US$2 billion.
MOFCOM’s assessment adds geopolitical and regulatory uncertainty to closing and integrating the acquisition. If the transaction proceeds smoothly, it may set a precedent encouraging other Chinese AI startups to relocate abroad. Conversely, enforcement action could alter deal implementation and integration plans.
