Signal
China’s Ministry of Commerce has launched a regulatory review of Meta Platforms’ acquisition of Manus, assessing potential compliance issues related to export controls and overseas investment rules.
Backdrop
Manus, a Singapore-based agentic AI startup founded by Chinese entrepreneurs, was acquired by Meta in late 2025 in a deal estimated at $2 billion to $3 billion.
- The investigation: Officials are examining whether the relocation of personnel, technology, and intellectual property from China to Singapore prior to the transaction required formal state approval.
Why it matters
The move suggests Beijing may be extending regulatory oversight to offshore AI transactions that retain material links to Chinese-origin technology. If sustained, this could narrow the effectiveness of “Singapore-flip” structures, introducing new friction for cross-border AI M&A.
What to watch
- Whether the review results in formal conditions or a retroactive ruling.
- If similar AI startups with China-to-global migration paths face follow-on scrutiny.
- Any changes in how Meta manages and integrates its Singapore-based AI workforce.
