The more than US$2 billion acquisition of agentic AI start-up Manus by US social media giant Meta Platforms could face scrutiny from Beijing over technology export controls, experts warn.

The sale of Manus, a Singapore-based but Chinese-founded AI agent developer, could raise compliance questions around Beijing’s technology export regime, and expectations that the company can fully decouple from China may be “oversimplified”, said Cui Fan, a professor at the University of International Business and Economics and chief expert at the China Society for World Trade Organization Studies.

In a commentary published on WeChat on Saturday, Cui said the core issue was “whether there exists any technology whose export is prohibited or restricted under Chinese laws and regulations, but which has been transferred overseas without approval.”

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He cited China’s current Regulations on the Administration of Technology Import and Export, adding that regulators would need to assess “when, in what manner, and which technologies were transferred abroad by Manus’ onshore entities, including both natural persons and legal entities”.

Cui noted that there had been no confirmation that members of Manus’ core team have relinquished Chinese nationality, nor any indication that, as individuals, they were no longer subject to Chinese jurisdiction. He added that Manus’ mainland-registered parent, Butterfly Effect, remained under the control of the founding team, and that its early-stage research and development work took place in China.

The Meta logo is seen at Porte de Versailles exhibition centre in Paris, France, June 11, 2025. Photo: Reuters alt=The Meta logo is seen at Porte de Versailles exhibition centre in Paris, France, June 11, 2025. Photo: Reuters>

The deal has drawn intense industry attention for what appears to be a staggering return for the founders and early investors. It also comes against the backdrop of a widening US-China technology divide, marked by Washington’s tighter scrutiny of outbound investments by US venture capital firms and individuals, as well as curbs on advanced technology exports.

On the Chinese side, long-standing restrictions on major US tech platforms have limited them from launching American AI models in China.

In April 2025, Manus – which had just completed its widely-watched product launch in March – raised US$75 million in a funding round led by Benchmark, a move that reportedly attracted closer attention from US regulators. Shortly after, the company – which had its roots in Beijing and Wuhan – relocated to Singapore, laying off some of its China-based workforce and shutting down its Chinese social media accounts. A previously announced partnership with Post owner Alibaba Group Holding on developing a Chinese version of Manus also came to nothing.

The Singapore move was considered an effort to secure access to US capital, computing resources, large language models and international markets.

“Driven by US regulations restricting investment in China, Manus gradually disentangled itself from its corporate structure and business operations in China, leading to this mutual move towards Meta,” Cui wrote, describing it as a “special commercial deal forged under complex geopolitical conditions”.

Concerns over potential intervention from Beijing have also been raised elsewhere. Writing on Substack, Paul Triolo, a partner at DGA-Albright Stonebridge Group, said AI agents were highly likely to be classified as “important information technology products and services” under Chinese rules, potentially bringing the deal within the scope of China’s national security review of foreign investment activities.

“In theory, if they choose to do so, Chinese regulators could spin a national security narrative around Meta’s acquisition,” Triolo wrote. However, he added that “as with TikTok, Beijing’s primary objectives are to prevent Chinese companies from being subjected to forced divestiture or forced tech transfer: neither is at play here”.

Cui noted that Chinese law clearly stipulates legal liabilities for the unauthorised export of restricted technologies.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2026 South China Morning Post Publishers Ltd. All rights reserved.

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