China's commerce ministry said on Thursday that the government supports companies engaged in transnational operations and technology cooperation deals as long as they comply with the law. The statement came from spokesperson He Yadong in response to questions about what measures China would take regarding Meta's acquisition of Manus, the Chinese-origin AI startup.
The comments arrive at a sensitive moment in the ongoing regulatory review of Meta's estimated $2 billion purchase of Manus, a deal that has become a flashpoint in the growing tension between Washington and Beijing over control of artificial intelligence technology.
What Is Manus and Why Did Meta Buy It?
Manus is a Singapore-based developer of general-purpose AI agents, originally founded in China before relocating its headquarters. The startup launched its first AI agent in early 2025, which could execute complex tasks such as market research, coding, and data analysis. Unlike traditional chatbots that simply answer questions, Manus operates as an autonomous agent capable of completing multi-step tasks independently.
The company achieved remarkable commercial success, claiming more than $100 million in annualized revenue just eight months after launch. Venture capital firm Benchmark led a $75 million funding round in April 2025, giving Manus a post-money valuation of $500 million.
Meta announced the acquisition on December 29, 2025, saying the deal was aimed at accelerating AI innovation and integrating advanced automation into its consumer and enterprise products, including its Meta AI assistant. The company planned to weave Manus technology into Facebook, Instagram, and WhatsApp while keeping the Manus subscription service running independently.
Why Is China Investigating the Deal?
The deal triggered regulatory alarm in Beijing almost immediately. China's Ministry of Commerce launched a probe in early 2026 to examine whether the sale of Manus violated regulations concerning technology exports and capital outflows. The investigation intensified over subsequent months.
According to the Financial Times, China has barred two co-founders of Manus from leaving the country as regulators review whether Meta's $2 billion purchase violated investment rules.
The core concern for Beijing centers on the fact that Manus was originally built in China by Chinese engineers, with backing from Chinese investors including Tencent and ZhenFund. The company moved its headquarters to Singapore in mid-2025, and its product became unavailable in China shortly after. Around the same time, Manus reportedly laid off its Chinese staff and closed offices in the country.
Geopolitical Tensions at the Heart of the Matter
The Manus deal sits at the intersection of a broader technology rivalry between the United States and China. The U.S. has restricted American investment in sensitive Chinese technologies including AI and semiconductors, pushing Chinese startups to relocate if they want access to Silicon Valley capital.
Industry analysts see the Chinese probe as a strategic move. One analyst suggested that the most likely outcome is a lengthy approval process with potential conditions on how Manus technology developed in China can be used, rather than an outright block — but the threat of stricter action gives Beijing bargaining power.
The deal also attracted scrutiny in the United States, where Senator John Cornyn criticized Benchmark's earlier investment in Manus, raising concerns about American capital flowing to a company with Chinese origins.
What Happens Next?
China's latest statement appears carefully calibrated — affirming support for lawful cross-border business while leaving room for regulatory action. The commerce ministry's review remains ongoing, and the travel restrictions on the Manus co-founders signal that Beijing is treating the matter seriously.
For Meta, the acquisition represents a critical piece of its AI strategy. The company has invested tens of billions of dollars in AI infrastructure and sees autonomous agents as the next major revenue opportunity. Whether the deal survives Chinese regulatory scrutiny without major conditions remains one of the most closely watched questions in the global tech industry.
The outcome could also set a precedent for how Chinese-founded AI startups navigate international acquisitions in the future, with implications for the broader flow of AI talent and technology between the world's two largest economies.
