China’s Ministry of Commerce announced on Thursday a review of Meta Platforms’ acquisition of Singapore-based AI firm Manus, valued above $2 billion. The probe assesses compliance with export controls, technology transfers, and overseas investment rules, treating advanced AI as a strategic national asset.
Meta completed the purchase last month to integrate Manus’s autonomous agents—capable of market research, coding, and data analysis—into products like Meta AI. Originating from Chinese startup Butterfly Effect (Monica.Im), Manus relocated to Singapore in 2025, cut most Beijing staff, and grew to 105 employees across Singapore, Tokyo, and San Francisco.
The firm hit $100 million in annual recurring revenue within eight months of its March launch, claiming a global record. It had raised $75 million in April, led by Benchmark, with ties to Tencent and partnerships including Alibaba’s Qwen model.
“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 said at a press briefing.
“Manus’s exceptional talent will join Meta’s team to deliver general-purpose agents across our consumer and business products, including in Meta AI,” Meta stated in December.
Sources value the deal at $2.5 billion. Meta confirmed no ongoing Chinese ownership or mainland operations. This marks Meta’s fifth 2025 AI buy amid $70 billion in spending to rival OpenAI.
China’s review “underlines that [the country] considers advanced AI agents, models and related IP to be strategic assets,” said Nick Patience, AI lead at The Futurum Group.
“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,” he added.