Meta's $2b Manus acquisition sparks concerns from Chinese regulators

• Meta plans to acquire Manus for $2 billion, but not before Chinese investigators get stuck in
• The Chinese company relocated to Singapore, potentially without Chinese permits
• Manus' AI could help improve Meta's AI, but Manus will continue to operate separately

Singapore-based but Chinese-founded AI company Manus is set to be acquired by Meta in a $2 billion takeover, but the deal hasn't gone unnoticed by Chinese regulators, who are concerned about export laws.

According to the Financial Times, Chinese regulators are now reviewing whether the acquisition violates export-control laws, and whether Manus needed an export license to move from China to Singapore.

If it's deemed that an export license would've been needed, it could mean that the deal is stalled, or even stopped altogether.

Meta could affected

The reports even detail how Manus' founders could face criminal liability if they're found to have exported technology without the correct authorization.

This comes as the term 'Singapore washing' becomes more commonplace – a trend that sees companies relocating, potentially before an acquisition deal, in order to avoid geopolitical scrutiny. If left ahead to accelerate, the trend could encourage more Chinese startups to relocate abroad.

Per the deal's terms, Manus will continue to operate and sell subscriptions via its app and website, and the company will still be based in Singapore.

"Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made," CEO Xiao Hong wrote when the deal was announced by the two companies in December 2024.

Meta emphasized the scale of the opportunity, with Manus having already processed over 147 trillion tokens and created over 80 million virtual computers. The integration will also unlock Meta's access to Manus expertise to accelerate the development of general-purpose AI agents, improving the Meta AI portfolio.

Despite Chinese regulatory uncertainty, there appears to have been no signs of US pushback.

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