China’s Ministry of Commerce freshly backed cross-border operations and technology cooperation, “according to needs and the law,” following concerns over Meta’s reported $2 billion acquisition of Chinese AI startup Manus. The following statement comes from a Financial Times report that Chinese regulators are revising whether the acquisition violates investment rules.
Manus, which hit $100 million in annual recurring revenue (ARR) just eight months after launching in the market, has become a uniquely standout in the AI space.
Its AI agent can perform tough tasks like market research and data analysis on its own, positioning it apart from conventional chatbots that involve constant prompting. And to highlight, Manus was originally part of the Chinese start-up Butterfly Effect, but later became an independent entity and moved its headquarters to Singapore last year.
Key Highlights:
- China supports cross-border tech deals but reviews Meta’s $2B Manus acquisition
- Manus reaches $100M ARR in 8 months, showcasing its AI innovation
- Beijing’s review of the acquisition reflects growing concerns over technology transfer
However, the acquisition by Meta has sparked significant backlash in Beijing. Sources familiar with the matter have revealed that Manus Co-founders Xiao Hong and Ji Yichao were restricted from leaving China while regulators investigate. Beijing’s actions suggest it views AI models and related intellectual property as strategic assets.
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Chinese officials are also reportedly concerned that the Manus acquisition could set a precedent for other Chinese companies to shift operations abroad without proper vetting from the government.
The review underscores the rising geopolitical risks surrounding cross-border tech deals, where both U.S. and Chinese regulators are seeking to assert control over technology transfer.
While Meta and Western investors like Benchmark, which led a $75 million funding round for Manus, navigate the scrutiny, Beijing’s review highlights a broader push to protect homegrown technology and innovations from being lost to foreign buyers.