China calls Meta’s $2 billion Manus deal a tech “conspiracy”
China has branded Meta’s 2 billion dollar acquisition of AI startup Manus as a “conspiracy,” escalating tensions over one of the most sensitive cross border deals in artificial intelligence.
The assessment came from China’s national security commission, a top level body chaired by Xi Jinping. According to reports, the conclusion triggered a broad investigation involving multiple agencies, including economic planners, commerce authorities, and antitrust regulators. The probe began shortly after Meta announced the deal in December 2025.
Meta agreed to acquire Manus, a Singapore based startup focused on autonomous AI agents, for more than 2 billion dollars. The company was founded by Chinese entrepreneurs Xiao Hong and Ji Yichao and reached over 100 million dollars in annual recurring revenue within eight months of launch. Its technology enables software agents to complete complex digital tasks with limited human input.
Chinese authorities moved quickly to scrutinize the transaction. Officials questioned whether Manus relocated from China to Singapore in mid 2025 to bypass export controls. The review intensified in March when the founders were summoned to Beijing for meetings with regulators and later barred from leaving the country during the investigation.
Meta stated that the acquisition complies with all applicable laws and expressed confidence in a resolution. However, the case has drawn wider attention across the tech and investment sectors.
The controversy has disrupted a strategy known as “Singapore washing,” where Chinese founded startups shift operations to Singapore to navigate regulatory pressure from both Beijing and Washington. The strong response from Chinese authorities has raised concerns among investors and entrepreneurs about increased scrutiny and reduced flexibility.
At the same time, some officials worry that strict enforcement could deter innovation and weaken the startup ecosystem. Despite the ongoing investigation, more than 100 Manus employees were integrated into Meta’s Singapore operations earlier this year.
The dispute reflects a broader shift in China’s policy approach. Advanced AI capabilities are increasingly treated as strategic assets, with tighter controls on talent, capital, and technology flows. The outcome of the Manus deal may shape how future cross border AI transactions are handled amid growing geopolitical competition.
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