Beijing has intensified its scrutiny of Meta Platforms (NASDAQ:META) $2 billion acquisition of Chinese-founded agentic AI startup Manus, expanding the probe beyond initial concerns over technology export and national security rules to include potential violations of cross-border currency controls, tax accounting standards, and overseas investment regulations, according to people familiar with the matter.
The investigation, which began shortly after the deal closed in December 2025, centers on whether sensitive Chinese technology or user data may have been transferred to a U.S. company, as well as compliance with rules governing outbound capital flows and corporate restructuring.
Manus, founded by Chinese entrepreneurs and originally based in Beijing and Wuhan, relocated its headquarters and staff to Singapore in July 2025, a move that has drawn attention as an example of “Singapore-washing”—a practice where Chinese-origin tech firms shift domicile to the city-state to facilitate global expansion while maintaining ethnic Chinese talent and language advantages.
The broadening review highlights Beijing’s growing wariness of high-profile U.S. acquisitions of Asian AI companies, particularly those involving advanced agentic AI technology capable of autonomously executing complex tasks.