Meta’s $2B Manus Acquisition Faces China Export Control Probe

Late last month, news broke out that Meta has acquired AI startup Manus in a deal exceeding $2 billion. Meta, while announcing the news, confirmed that Manus will cut all ties with Chinese investors and fully exit the Chinese market following the acquisition.

Meta’s $2 billion Manus deal uncertain, as China open export control investigation

Guess what? China has decided to intervene by launching an export control investigation into Meta’s planned acquisition. Just to be clear, Manus has already moved its operations out of China to Singapore, but the latest move shows that the government has authority over China-origin companies.

The probe, announced this week by China’s Ministry of Commerce, puts fresh uncertainty around a deal Meta had expected to close in Q1 2026. Despite relocating its headquarters, Beijing now appears to be treating Manus as still subject to Chinese export controls.

During a press briefing, Ministry of Commerce spokesperson He Yadong said, “The Chinese government consistently supports enterprises in conducting mutually beneficial transnational operations and international technological cooperation in accordance with laws and regulations.”

Although it sounds quite diplomatic in tone, the statement confirms that regulators are investigating whether Manus transferred AI technology or talent abroad without the government’s approval. China reportedly wants to confirm whether AI systems and expertise developed in the homeland can be sold to US tech giants without Beijing’s consent.

There are some huge conequences for Manus, if China founds any violation

If regulators find out that Manus violated export rules, it could face consequences that would go well beyond deal delays. Even worse, reports suggest company founders could face criminal liability under Chinese law. China’s Ministry of Commerce has a track record of completing its export control reviews within 90 days. However, no confirmed timeline has been announced. Whatever may be the case, Meta must be feeling nervous.

For the uninitiated, Manus was founded in Beijing in 2022 and quickly became a hit after launching its AI agent. Within just eight months, the company reportedly hit $100 million in annual recurring revenue, making it one of the fastest-growing AI startups to emerge from China. In July 2025, Manus relocated its headquarters to Singapore. Sadly, 80 Beijing-based employees were laid off in the process. Well, Manus faced massive backlash from Chinese nationalist outlets, which labeled the company a “deserter” for leaving the domestic market.