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China reviews sale of AI startup to Meta over possible breaches of laws

(MENAFN) China is examining the sale of Artificial Intelligence (AI) startup Manus to US technology giant Meta over potential violations of technology export control laws, according to reports published Wednesday. The Financial Times cited sources familiar with the matter, noting that the review is being conducted by officials from China’s Commerce Ministry.

The review aims to determine whether the transaction requires an export license under Chinese law. Meta announced last week that it had acquired Manus, continuing its large-scale investments in AI.

Manus, originally founded in China before relocating to Singapore, unveiled its first general AI agent in early 2025. The system was capable of performing complex tasks such as data analysis, coding, and market research, positioning the company as a rising player in the global AI sector.

According to the report, Chinese officials are investigating whether the relocation of Manus’ staff and technology to Singapore, followed by its sale to Meta, should have triggered export licensing requirements. The review remains at an early stage and may not lead to a formal investigation.

However, analysts noted that the licensing requirement could give Beijing “an avenue to influence the transaction, including trying to force the parties to abandon the deal in an extreme case.”

Financially, Manus has demonstrated rapid growth. Just eight months after its establishment, the company reported average annual revenue of more than $100 million, with a run rate exceeding $125 million.

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