China’s Commerce Ministry announced Thursday it would conduct a comprehensive assessment of Meta Platforms’ acquisition of artificial intelligence startup Manus, signaling heightened scrutiny of cross-border technology transfers amid ongoing U.S.-China technological competition. Ministry spokesperson He Yadong confirmed authorities would examine whether the transaction complies with Chinese laws and regulations governing technology exports and cross-border mergers.
The investigation marks a significant development in the increasingly complex landscape of global tech acquisitions, particularly involving companies with Chinese roots. Although Manus operates as Singapore-based Butterfly Effect Pte, its technological origins trace back to Beijing-registered entities established several years ago. This connection has drawn attention from Chinese regulators despite Meta’s assertion that the acquisition includes “no continuing Chinese ownership interests” and that Manus will discontinue its China operations.
Industry analysts interpret the move as reflecting China’s intensified focus on technological security. Gary Ng, senior economist for Asia Pacific at Natixis, noted that “security has become the top concern for Chinese policymakers,” adding that “any tech transfer that could give the U.S. an edge in competitiveness will be heavily scrutinized.”
Academic experts have raised specific concerns regarding compliance with China’s technology export control frameworks. Professor Cui Fan of the University of International Business and Economics in Beijing questioned whether the transaction involved “technologies prohibited or restricted from export under Chinese laws and regulations being exported without a license.”
The acquisition represents Meta’s latest strategic move to enhance its artificial intelligence capabilities across its platforms, including Facebook and Instagram—services that remain blocked in China under the country’s internet governance policies. Manus, which developed a general-purpose AI agent capable of autonomously performing multi-step complex tasks, reported annual recurring revenue exceeding $100 million last month.