Meta’s acquisition of Singapore-based AI startup Manus AI is attracting heightened attention from Chinese regulators, with experts warning that the transaction could fall under China’s technology export and national security review regimes. According to reporting by the South China Morning Post, the key issue under examination is whether any restricted or sensitive technologies were transferred overseas without proper regulatory approval, a determination that could complicate the deal despite Manus now being headquartered outside mainland China.
Regulatory scrutiny, experts say, will likely focus on the startup’s operational and legal history. Cui Fan of the China Society for WTO Studies noted that authorities could closely examine when the technology was developed, how it was transferred, and which entities were involved in moving it abroad. Particular attention may be paid to Manus’ onshore operations in China, as well as whether any exports occurred before the company scaled back its mainland presence. Cui also pointed out that there has been no public confirmation that Manus’ core technical team is fully outside Chinese jurisdiction, a factor that could further influence regulatory interpretation.
Other analysts cited in the report suggested that the nature of Manus’ technology itself could elevate regulatory risk. AI agents, they said, may be classified as “important information technology products and services,” a designation that would potentially place the Meta–Manus transaction within the scope of China’s broader national security review framework. Such reviews are designed to assess whether overseas deals involving Chinese-developed technology could pose risks to national interests, even if the acquiring company is foreign and the target is formally based abroad.
The regulatory questions are sharpened by Manus AI’s corporate trajectory. Founded in China in 2022, the company gained rapid traction before raising $75 million in funding in 2025, led by Benchmark. It subsequently shifted its headquarters to Singapore and significantly reduced its mainland China operations. However, Manus continues to maintain a China-registered parent company, creating a complex legal structure that could keep it within the reach of Chinese regulators.
Observers note that the situation echoes earlier cases in which Beijing asserted oversight over technologies initially developed domestically, even after companies relocated overseas. These precedents suggest that relocating headquarters may not be sufficient to eliminate regulatory exposure if the underlying intellectual property or development activity originated in China.
As Meta moves forward with its AI expansion strategy, the Manus deal highlights the increasingly intricate regulatory landscape surrounding cross-border AI acquisitions. For global tech companies, it underscores how geopolitical considerations and technology controls can follow innovation across borders, long after a startup has moved its base of operations.
