Meta’s acquisition of AI startup Manus may still face attention from Chinese regulators, even after the company moved its headquarters to Singapore.
Policy specialists say the central question is whether sensitive technology left China without official clearance. Regulators would likely examine the timeline of any transfers, the methods used, and the specific systems or know-how involved.
China’s technology export rules allow authorities to review overseas movements linked to domestic research activities. Work completed while Manus was still operating in mainland China could therefore remain within regulatory scope.
Manus was founded in China in 2022 by a local team before expanding overseas. Its international profile increased after a funding round in April 2025 that valued the company at roughly $500 million.
That investment also attracted attention in the United States, where officials reviewed whether it complied with limits on American funding of Chinese artificial intelligence ventures.
Corporate Structure and Early Development Keep China in the Picture
After securing fresh capital, Manus reduced its mainland presence. The company cut staff, closed local offices, dropped plans for a China-focused product, and ended technical cooperation discussions with Alibaba.
Even so, experts caution that distancing measures may not be decisive. There has been no public confirmation that key founders have given up Chinese nationality or fully stepped outside Chinese legal jurisdiction.
The company’s mainland-registered parent entity, Butterfly Effect, also remains under the control of the founding team. In addition, much of Manus’ early research and development took place inside China.
Analysts note that advanced AI systems may fall under categories that trigger national security review. If classified in this way, the Meta–Manus deal could be examined under China’s foreign investment framework.
The situation echoes earlier cases in which China maintained authority over domestically developed technology, even when companies attempted to separate or relocate their overseas operations.
