China Slams Meta’s $2B Manus Deal as Conspiratorial
China has sharply criticized the $2 billion acquisition of Manus by Meta. Specifically, Beijing described the deal as a “conspiratorial” effort to weaken the country’s technology base. As a result, tensions have intensified around one of the most controversial cross-border AI transactions in recent years.
Moreover, China’s National Security Commission, led by Xi Jinping, issued this assessment shortly after the deal was announced in December 2025. Consequently, senior Communist Party leaders reviewed the findings, which then prompted a broad multi-agency investigation. In addition, authorities brought in several government bodies, including economic planners and regulators, to examine the transaction more closely.
Acquisition Faces Deepening Investigation
Meta revealed the acquisition on December 29, 2025, purchasing Manus, a Singapore-based AI startup founded by Xiao Hong and Ji Yichao. Notably, the company develops autonomous AI agents that can complete complex digital tasks with minimal human input. Furthermore, Manus had already surpassed $100 million in annual recurring revenue within eight months of launching.
However, scrutiny began early. In January, China’s commerce ministry initiated a review to determine whether Manus relocated to Singapore to bypass export controls. By March, authorities had intensified the probe and summoned both founders to Beijing for discussions with regulators. Subsequently, reports indicated that officials restricted the executives from leaving the country as the investigation continued.
A Meta spokesperson told Reuters at the time that “the transaction complied fully with applicable law” and that the company anticipated “an appropriate resolution to the inquiry”.
Wider Impact on Tech and Investment Climate
The investigation has already sent ripples across China’s technology and investment sectors. Initially, the Manus deal appeared to validate a strategy often called “Singapore washing,” where startups relocate to avoid regulatory pressure. However, China’s firm response has quickly challenged that approach.
At the same time, some officials have raised concerns about the broader consequences. Although enforcement aims to protect strategic assets, it may also discourage innovation and investment. Meanwhile, more than 100 Manus employees joined Meta’s Singapore office in early March, even as the regulatory review remained ongoing.
Ultimately, the case highlights a growing geopolitical struggle over AI talent and technology. Therefore, China increasingly treats advanced AI capabilities as critical resources that must remain within its borders.
