China has announced that it will investigate Meta’s reported two billion dollar acquisition of artificial intelligence startup Manus to check whether the deal follows the country export control rules. The review will focus on laws related to technology import and export, overseas investment, and related regulations.
Meta acquired Singapore based Manus last month as part of its plan to strengthen automation features across its consumer and business products. While the company did not officially disclose the deal value, reports have suggested it crossed two billion dollars.
A spokesperson from the Ministry of Commerce said the government supports cross border cooperation as long as it follows legal and regulatory requirements. The spokesperson added that the assessment will look into how the acquisition aligns with existing laws.
Manus was originally developed by a Chinese startup known as Butterfly Effect, also called Monica.Im. It later became a separate company and moved its base to Singapore earlier this year. The startup gained attention in March after launching its first AI agent, which can perform tasks such as market research, coding, and data analysis.
The company reportedly reduced its workforce in Beijing in July as it prepared for global expansion. Manus has said it will continue to operate from Singapore and had 105 employees across Singapore, Tokyo, and San Francisco as of December.
Manus also claimed it crossed 100 million dollars in annual recurring revenue within eight months of launching its product, calling it the fastest startup to reach this milestone.
“Manus’s exceptional talent will join Meta’s team to deliver general purpose agents across our consumer and business products, including in Meta AI,” the company said in a statement in December.
Industry experts believe the probe shows how China views advanced AI tools and intellectual property as strategic assets. Analysts expect the process to take longer and may include conditions on how the technology is used, rather than an outright rejection.
The acquisition comes as Meta continues to invest heavily in artificial intelligence. The company has made several strategic moves to stay competitive with major rivals in the AI space.
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