Meta's $2B Manus Acquisition Worries Chinese Regulators

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US regulators welcomed Meta's $2 billion December acquisition of AI-assistant platform Manus, but Chinese regulators were far less receptive. Manus was originally headquartered in Beijing before relocating to Singapore last summer, which alleviated US concerns but not China's. Beijing has deepened an investigation into the acquisition, worried about potential violations of tech export controls, data sharing, and national security issues.

Why it matters

The Manus acquisition highlights the growing tensions between the US and China over technology and data control. China is concerned that the relocation of Chinese tech firms to more friendly jurisdictions like the US or Singapore will allow American companies to gain access to sensitive technologies and user data, undermining Beijing's oversight. This case could set a precedent for how China responds to future cross-border tech deals involving Chinese firms.

The details

Manus AI agents help execute tasks like resume screening, trip planning, and stock analysis. For Meta CEO Mark Zuckerberg, Manus is a valuable target that can be integrated into Meta's apps. However, Manus was originally created by Chinese entrepreneur 'Red' Xiao Hong and headquartered in Beijing, which raised concerns with US regulators. To alleviate these worries, Xiao decided to relocate Manus to Singapore last summer. But this move did not address China's fears, as Beijing is worried other Chinese tech firms could follow suit and transfer their technology abroad.

• In December 2025, Meta acquired Manus for $2 billion.
• Last summer, Manus relocated from Beijing to Singapore.
• In January 2026, China's commerce ministry deepened an investigation into the Manus acquisition.

What’s next

The investigation by China's commerce ministry could lead to a worst-case scenario: the cancellation of Meta's acquisition of Manus.