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Meta's $2B Manus Deal Faces China Scrutiny

Financial Times Companies •
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Chinese regulators have restricted Manus co-founders Xiao Hong and Ji Yichao from leaving the country as Beijing reviews Meta's $2 billion acquisition of the AI agent company. The National Development and Reform Commission summoned the executives for questioning about potential violations of foreign direct investment rules related to Manus's onshore Chinese entities.

Manus, founded in China but headquartered in Singapore, relocated after a US venture capital financing round that drew Treasury scrutiny. The deal, completed in December, is now under review by China's Ministry of Commerce for potential export control violations. Chinese officials have expressed concern about "selling young crops" in strategic sectors like AI to foreign buyers.

While no formal investigation has been opened, regulators appear to be seeking ways to intervene in the completed transaction. An extreme outcome would be unwinding the deal, though Meta has already begun integrating Manus's AI agent software into its platform. The case highlights growing tensions over technology transfers and China's efforts to maintain control over strategic AI assets.