China has launched a formal investigation into Meta’s $2 billion acquisition of the AI startup Manus that happened in late December, citing potential violations of technology export laws. Ministry of Commerce spokesperson He Yadong confirmed that regulators are assessing whether the startup’s relocation from Beijing to Singapore in 2025 was a maneuver to evade domestic supervision.
The deal is a rare instance of a US tech giant acquiring a high-profile firm with Chinese roots. While Meta has stated that Manus will discontinue all Chinese operations and sever investor ties, Beijing’s probe could stall or even scupper the transaction if it determines that “controlled technologies” were transferred without a license.
The probe is a major development in the US-China tech rivalry, as it targets a phenomenon known as “Singapore washing”, where Chinese-founded startups relocate to Singapore to bypass geopolitical restrictions before being acquired by American tech giants. The move signals China’s intent to crack down on it and protect its domestic AI talent pool.
