China has sent a clear warning to US technology companies seeking to acquire artificial intelligence talent and intellectual property, opening a regulatory probe into Meta’s acquisition of AI startup Manus in a move widely seen as a signal to curb foreign poaching of China-linked innovation.
Beijing confirmed this week that its Ministry of Commerce is reviewing Meta’s takeover of Manus to assess whether the deal complies with China’s export control laws and regulations governing the transfer of sensitive technologies. The investigation, announced during a regular press briefing, comes amid intensifying competition between the United States and China for dominance in artificial intelligence.
Manus, launched in China in March 2025 by AI product studio Butterfly Effect, gained international attention after unveiling what it described as a “general-purpose” AI agent capable of performing complex tasks with limited human supervision. Although the company relocated its headquarters to Singapore in mid-2025, Chinese authorities appear unconvinced that the move places the startup beyond Beijing’s regulatory reach.
Meta announced in December that it would acquire Manus in a deal reportedly valued at more than US$2 billion and sever the startup’s remaining ties with China. The US tech giant said it plans to retain Manus’ leadership team while integrating its technology into Meta’s broader AI strategy. Meta has not publicly commented on China’s probe.
Analysts say the investigation reflects China’s growing concern over what has become known as “Singapore washing”, the practice of relocating companies from China to jurisdictions such as Singapore to ease regulatory pressure while retaining Chinese-origin technology and talent. Several high-profile firms, including ByteDance and Shein, have made similar moves in recent years.
Beyond jurisdictional issues, the probe highlights Beijing’s determination to prevent an exodus of AI expertise and intellectual property to the United States. According to analysts at the Mercator Institute for China Studies and GlobalData, China increasingly views outbound AI acquisitions as a strategic risk, particularly as US firms aggressively recruit top engineers and founders with lucrative compensation packages.
The focus on Manus also underscores how the geopolitical tech rivalry has expanded beyond semiconductor exports. While US restrictions on advanced Nvidia chips remain a key pressure point, regulators on both sides are now paying closer attention to AI models, agents, software architectures and human capital.
Experts say the outcome of the investigation is unlikely to result in an outright block of the Meta-Manus deal but could involve conditions or restrictions designed to limit technology transfer. Similar probes by China’s commerce ministry have previously lasted more than a year.
For global tech firms, the message from Beijing is unmistakable: China intends to more tightly police the movement of AI talent and technology, even when companies attempt to rebrand or relocate abroad. The move is likely to add another layer of complexity to cross-border mergers and acquisitions in the AI sector and accelerate the gradual fragmentation of global AI ecosystems.
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