China will conduct a formal assessment and investigation into Meta Platforms (NASDAQ:META) acquisition of artificial intelligence startup Manus, the Chinese Ministry of Commerce (MOFCOM) announced Thursday.
The probe signals a potential regulatory hurdle for the U.S. tech giant’s largest AI-focused purchase to date.
Ministry spokesperson He Yadong stated during a press briefing that all companies involved in foreign investment, technology exports, and cross-border data transfers must strictly adhere to Chinese laws.
"The ministry will work with relevant departments to conduct an investigation into the consistency of this acquisition with laws and regulations," He said.
The investigation centers on whether Manus—a company founded in Beijing before relocating to Singapore in mid-2025—violated strict export control rules.
Authorities are reportedly examining if the transfer of "agentic" AI technology, which was largely developed while the team was based in China, required an official export license.
Under 2024 and 2025 updates to China's export catalog, certain AI algorithms and "data-driven personalized information" technologies are subject to state approval before being sold to foreign entities.
Manus, valued at over $2 billion in the deal announced in late December 2025, gained industry fame for its "autonomous AI agents" capable of executing complex tasks like coding and market research without human intervention.
The startup reportedly achieved $100 million in annual recurring revenue (ARR) just eight months after its March 2025 launch.
While Meta has moved to keep Manus's operations in Singapore and buy out all Chinese investors, Beijing’s intervention mirrors its previous scrutiny of high-profile tech outflows.
If MOFCOM finds a violation of export controls, it holds the authority to impose fines or, in extreme cases, demand a reversal of the asset transfer.