The $2 billion acquisition of AI platform Manus by US tech giant Meta, which was originally a routine cross-border merger, has recently attracted the attention of Chinese authorities. According to the Financial Times, China's Ministry of Commerce has begun assessing whether the deal violates technology export controls, a move that could give Beijing room to exert pressure on the transaction.
Chinese authorities intervene to investigate: Risk of technology outflow is key.
According to two sources familiar with the matter, China's Ministry of Commerce is reviewing whether the sale of Manus' team and technology to Meta after its relocation to Singapore required an export license under Chinese law. While this is still in the preliminary stages and a formal investigation may not be initiated, if it is determined that an export license is necessary, Beijing could use this as leverage to intervene in the entire transaction, and in extreme cases, even demand its termination.
This is not the first time China has used export control regulations to interfere in international transactions. Back in the Trump administration, China used similar pretexts to prevent TikTok from being forced to sell to an American company.
"Singapore whitewashing" becomes a trend: a new Chinese approach to going global.
In the summer of 2025, the Manus team moved its core members and technology to Singapore, which is a common practice among Chinese startups to "wash their hands of the business in Singapore"—by setting up offices or even headquarters in Singapore, they can avoid China's strict regulations and geopolitical risks and access overseas capital and markets.
While most such companies still maintain an operational presence in China, Manus's Beijing office was deserted by August 2025, leaving relatively limited room for maneuver for Chinese regulators.
Given that the product uses non-sensitive technologies, is Beijing's willingness to intervene limited?
While the case has drawn attention from some Chinese officials, sources familiar with the matter indicate that Manus primarily focuses on AI assistant software, not projects considered core strategic technologies by China, thus reducing the urgency for Beijing to intervene. However, officials remain concerned that this case will encourage other startups to follow suit in circumventing domestic regulations, further exacerbating the brain drain.
Behind the scenes: US capital and policy pressures
Manus's overseas expansion is not accidental; it is closely related to a funding round led by the US venture capital firm Benchmark. The US Treasury Department has also investigated this investment to determine if it involves restrictive policies against China's AI industry. Some experts believe that this series of pressures from the US is a key driving force behind Manus's efforts to "de-Sinicize."
Cui Fan, a professor at the University of International Business and Economics, stated in a public post on WeChat that "Manus's gradual decoupling is clearly driven by US investment restrictions." He also emphasized that if it is confirmed that the team has developed technologies within China that fall under export controls, they may face legal or even criminal liability.
US perspective: Is the Meta acquisition a strategic victory?
In the United States, some observers see this as a victory for Washington's strategy of containing Chinese technology. Chris McGuire, a senior fellow at the Council on Foreign Relations (CFR), said, "Manus's 'defection' proves that the US and China are forming two separate AI ecosystems, and the US is clearly more attractive."
He added that the U.S. restrictions on investment in AI chips and technologies are reshaping the global AI landscape, and Meta's acquisition is an unexpected outcome of Washington's policies.
Both sides remain silent, and the fate of the deal remains unclear.
As of now, neither Meta nor China's Ministry of Commerce has responded to the report, while Manus declined to comment. The success of this acquisition remains uncertain.
What is certain is that AI has become a new focal point of competition between China and the United States, and every flow of technology or capital may trigger a geopolitical butterfly effect.
This article, "Meta's Acquisition of Chinese AI Startup Manus Sparks Controversy: Beijing Suspected of Export Control Review, Potentially Becoming a New Geopolitical Technology Battleground," first appeared on ABMedia ABMedia .
