China Calls Meta's $2B Manus Deal Conspiratorial, Bars Founders
China's National Security Commission, under President Xi Jinping, described Meta's $2 billion purchase of AI startup Manus as a conspiratorial move aimed at draining the country's technology resources. The Financial Times reported this view, which prompted a review by multiple government agencies.
The commission's statement led to scrutiny of the transaction through export controls, investment regulations, and competition rules. Manus focuses on agentic AI, systems designed to handle tasks independently. The company moved its headquarters from Beijing to Singapore during the summer of 2025. Meta completed the acquisition in December of that year.
Details of the Acquisition and Relocation
Manus gained attention for its work in agentic AI, a field where models act on their own to complete complex goals. Such technology represents a key area in artificial intelligence development. The startup's shift to Singapore came amid growing pressures on Chinese tech firms. Many companies have considered similar moves due to regulatory challenges in China.
Meta, the parent company of platforms like Facebook and Instagram, has invested heavily in AI. It released open-source models such as Llama to compete in the sector. The $2 billion deal for Manus fit into Meta's strategy to acquire talent and technology. However, Beijing saw the transaction differently.
Founders Face Restrictions
Co-founders Xiao Hong and Ji Yichao received summons from the National Development and Reform Commission, or NDRC, China's main economic planning body, in March. Since then, officials have stopped them from exiting the country. This action signals strong disapproval from the government.
The NDRC plays a central role in approving major investments and monitoring economic activities. Summoning the founders highlights the seriousness of the matter. Chinese authorities often use travel bans to enforce compliance in sensitive cases.
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Ongoing Reviews and Reactions
Several government bodies continue to investigate the deal. They apply export controls to check technology transfers. Investment laws ensure deals align with national interests. Competition rules prevent market distortions.
Reports indicate some Chinese investors explore options to reverse the acquisition. Meta stated that the purchase followed all relevant laws. The company made no further comments on the reviews.
Beijing aims to stop other firms from copying Manus's path. Relocating abroad and selling to foreign buyers could set a precedent. China has tightened rules on tech exports and overseas investments in recent years. President Xi Jinping chairs the National Security Commission, which oversees such threats.
Broader Context in Tech Tensions
China maintains strict oversight of its technology sector. Actions like this reflect efforts to retain talent and innovations. The U.S. and China have clashed over AI and semiconductors. Export restrictions from both sides affect global supply chains.
Manus's expertise in agentic AI draws interest because these systems promise practical applications. They differ from chatbots by executing actions, such as booking travel or managing workflows. Meta's acquisition sought to bolster its capabilities in this area.
The situation unfolds as governments worldwide address AI's rise. China prioritizes self-reliance in critical technologies. Events like this underscore challenges for startups navigating international deals.