Beijing Investigates Meta’s Acquisition of Agentic AI Startup, Manus
In Focus
- Meta acquired Manus in December 2025 in a $2 billion deal
- The investigation will determine Meta’s compliance with China’s tech export laws
- Manus employees are set to join Meta to deliver AI agents across its products.
Chinese authorities have started probing the $2 billion deal in which U.S. social media giant Meta acquired AI startup Manus. According to CNBC, China’s investigation on Meta is aimed at determining whether the acquisition violated the laws on technology export.
Emphasis on Mutually Beneficial Cooperation
Although the review is still in its early stages, the Chinese government has expressed support for mutually beneficial cooperation. A statement by the Ministry of Commerce in China shows the Meta Manus acquisition review will focus on broad regulatory compliance. This compliance relates to overseas investment, export controls, and technology import and export.
“The Chinese government consistently supports enterprises in conducting mutually beneficial transnational operations and international technological cooperation in accordance with laws and regulations,” Ministry of Commerce spokesperson He Yadong mentioned in a press briefing as per CNBC.
In December 2025, Meta acquired Manus to bring next-generation automation to its enterprise and consumer products. Although the terms of the merger were not stated, the Wall Street Journal reported that the value of the deal could have been more than $2 billion.
Manus’ Developed Agentic AI Technology
Manus was largely viewed as the next DeepSeek after it unveiled its first AI agent in March 2025. The AI agent allows users to perform tasks like market research and data analysis and coding.
It remains unclear whether China’s investigation into the Meta-Manus deal will also focus on the startup’s agentic AI technology. Analysts suggest that the probe into its deal with Manus shows China views AI agents, models, and other related intellectual properties as strategic assets. This view will likely shape the outcome of the investigation.
“The most likely outcome I see is a lengthier approval process and potential conditions around how Manus technology developed in China can be used, rather than an outright block, but the threat of stricter action gives Beijing bargaining power in a high profile, U.S. led acquisition,” Nick Patience, AI lead at The Futurum Group noted as cited by CNBC.
Acquisition by Meta to Keep Manus in Singapore
Manus was founded in China, but relocated to Singapore at the beginning of 2025. The company reportedly laid off most of its Beijing workforce in July 2025, as it focused on global expansion.
According to Manus, the merger with Meta will enable it to continue operating from Singapore. The company currently has a workforce of 105 employees in the South Asia nation, San Francisco, and Tokyo.
Meta already personalizes content and ads based on user interactions with its AI tools. Manus employees will be joining its team to support its push into autonomous AI agents and enterprise-focused AI workflows.
The AI startup achieved $100 million in annual recurring revenue in December 2025, about 8 months after it unveiled a product. Meta acquired the AI startup months after it raised $75 million in a funding round led by VC Benchmark.
