China investigates Meta's Manus acquisition for export control violations

China's Ministry of Commerce is looking into whether Meta's purchase of AI startup Manus, valued at $2 billion or more, violated export control rules. According to the Financial Times, authorities want to know if the relocation of Manus employees and technology to Singapore, followed by the sale to Meta, should have required an export license.

The company's core team relocated to Singapore in the summer of 2025 to distance itself from China-related geopolitical risks. The Beijing offices have sat empty ever since. All three founders, Red Xiao, Peak Ji, and Tao Zhang, also moved from China to Singapore.

The relocation came after a $75 million funding round led by US firm Benchmark. That investment triggered its own set of questions, but from the opposite direction. The US Treasury Department investigated whether American money was flowing into a Chinese AI company without proper authorization. Meta says there were no longer any Chinese ownership stakes in Manus by the time the deal closed. The founders had previously turned down investment offers from local Chinese government entities.