Manus–Meta Deal May Come Under Scrutiny From Beijing: Report

Meta’s recent acquisition of Singapore-based AI startup Manus could attract scrutiny from Chinese regulators over potential violations of technology export controls, according to the South China Morning Post. 

The report cited Cui Fan, the deputy general secretary and director of research at the China Society for WTO Studies.

Fan said regulators would focus on whether any technology restricted or prohibited under Chinese law was transferred overseas without approval. 

He pointed to China’s Regulations on Technology Import and Export Administration, under which authorities may assess when, how, and what technologies were moved abroad by Manus’ onshore entities, including both individuals and companies.

The concern arises because Manus, now headquartered in Singapore, was founded in China in 2022.

The company was established by a China-based team and raised $75 million in a Series B round in April 2025, led by US venture firm Benchmark, valuing it at about $500 million. The funding drew scrutiny from US regulators due to executive orders limiting American investment in Chinese AI companies, prompting a Treasury Department review.

After the round, Manus shifted its headquarters to Singapore and scaled back its China operations. This included layoffs in mainland China, shutting down local operations, cancelling plans for a China-specific product, and ending technical collaboration discussions with Alibaba.

However, despite attempts to distance itself from China, regulatory exposure may persist. 

Fan also noted that there has been no confirmation that Manus’ core team members have renounced Chinese nationality or that they are no longer subject to Chinese jurisdiction. 

He added that Manus’ mainland-registered parent company, Butterfly Effect, remains with the founding team, and that the firm’s early research and development was conducted in China.

Other experts quoted in the report said AI agents are likely to be classified as “important information technology products and services” under Chinese regulations, which could bring the Meta–Manus deal within the scope of China’s national security review of foreign investment.

The situation echoes the regulatory dynamics seen in the long-running TikTok saga. In that case, Beijing asserted jurisdiction over core technologies developed in China, particularly recommendation algorithms, even as parent company ByteDance sought to ring-fence or divest overseas operations.

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