China probes Meta’s $2bn acquisition of AI start-up Manus

In short: China has launched a wide-ranging review of Meta’s $2bn purchase of Manus, an AI start-up, after a national security body criticised the deal.

What happened

Meta agreed in December 2025 to buy Manus for $2bn, according to the Financial Times. Soon after, China’s National Security Commission, led by President Xi Jinping, reportedly described the deal as a “conspiratorial” attempt to weaken China’s technology base.

Chinese regulators across several agencies have since been pulled into the case. These include the National Development and Reform Commission (China’s top economic planner), the commerce ministry, and China’s antitrust watchdog. Officials are looking at the deal using different legal tools, including export controls (rules that limit what technology can be shared abroad), foreign investment rules, and competition laws.

Manus had already moved its main team and headquarters from Beijing to Singapore in mid-2025. Regulators had previously reviewed that move and decided it did not need strict controls, because Manus was not seen as having key technology that could not be copied. The new scrutiny is described as a reversal, with officials now under pressure to revisit earlier judgments.

In March, Manus co-founders Xiao Hong and Ji Yichao were summoned by the NDRC to discuss possible rule breaches. The FT previously reported they were later barred from leaving China while the review continues.

Why it matters

This case shows how closely governments are starting to treat AI companies, especially when money, talent, and ownership move across borders. For everyday users, it can affect whether popular AI products stay available, how they are run, and which country’s rules shape what the tools can do.

Source: Financial Times