China’s commerce ministry is reviewing Meta’s (META) $2B acquisition of AI startup Manus for potential violations of technology export controls, the Financial Times reported, citing people familiar with the matter.
The early-stage assessment examines if Manus’s staff and tech relocation to Singapore required a Chinese export license before the sale, the report said.
The need for a license might give Beijing a window to influence the transaction, including attempting to push parties to back out in an extreme case. The review is still in its early stages and may not result in a formal investigation, the people added.
However, a source added that Manus’s product was not considered core technology vital to China, reducing the urgency for intervention.
Meta Platforms (META) did not immediately respond to Seeking Alpha’s request for comment.
Manus—a Singapore-based firm with Chinese roots and a Beijing sister company—specializes in autonomous tasks like market research and coding. Meta (META) plans to operate the Manus AI agent software and integrate the technology into its own products.