China Signals Stricter AI Exit Rules with Review of Meta's Manus Deal

The Chinese Ministry of Commerce announced on January 8 that it will review Meta Platforms' proposed acquisition of the artificial intelligence startup Manus. This investigation seeks to determine if the multi-billion dollar deal complies with national laws regarding technology exports and outbound investment. The move signals an aggressive expansion of regulatory reach over Chinese-origin startups that relocate abroad to facilitate foreign buyouts.

Spokesperson He Yadong clarified during a news briefing that while the government supports international cooperation, all cross-border mergers must fulfill specific legal procedures. The ministry will collaborate with other departments to assess the transaction against existing export control catalogs and data security requirements. This scrutiny comes as the global race for autonomous AI agents reaches a fever pitch.

Manus, an innovative platform capable of executing complex digital tasks, was founded in China before moving its headquarters to Singapore in 2025. This redomiciling was widely viewed as a strategic move to attract global investors and avoid the friction of U.S. tech sanctions. However, the ministry’s latest response asserts that the company’s Chinese roots still trigger domestic regulatory obligations.

The investigation focuses on the potential export of restricted technologies, particularly those involving intelligent control and interactive interfaces. Under the Export Control Law, transferring such intellectual property to a foreign entity like Meta requires explicit government approval. Beijing is effectively closing the door on the practice of using third-country registration to bypass these stringent oversight mechanisms. This enforcement action creates a new layer of risk for venture capitalists and founders who utilize geographic restructuring to distance themselves from mainland regulations. By intervening in the Manus deal, the Ministry of Commerce is demonstrating that origin dictates jurisdiction more than legal domicile. The decision may prevent other high-performing Chinese engineering teams from being absorbed by American tech giants.