Beijing May Scrutinize Manus–Meta Deal After USD 75M Series B Funding
Beijing’s regulators are turning a watchful eye toward a new partnership that links a Chinese‑origin AI firm with a Silicon Valley giant. Manus, which shifted its legal base to Singapore last year, first emerged from a Beijing‑area team in 2022. Its recent capital raise—$75 million in a Series B round closed in April 2025—was led by Benchmark, a U.S.
venture fund, and pushed the startup’s valuation to roughly $500 million. That influx of foreign money, combined with the company’s Chinese roots, has already attracted official attention. As the deal with Meta moves forward, officials appear poised to assess whether the collaboration aligns with national policy on overseas investment and data security.
The question now is how much scrutiny the partnership will endure, and what it means for a firm that straddles two very different regulatory environments.
The concern arises because Manus, now headquartered in Singapore, was founded in China in 2022. The company was established by a China-based team and raised $75 million in a Series B round in April 2025, led by US venture firm Benchmark, valuing it at about $500 million. The funding drew scrutiny fr
The concern arises because Manus, now headquartered in Singapore, was founded in China in 2022. The company was established by a China-based team and raised $75 million in a Series B round in April 2025, led by US venture firm Benchmark, valuing it at about $500 million. The funding drew scrutiny from US regulators due to executive orders limiting American investment in Chinese AI companies, prompting a Treasury Department review.
After the round, Manus shifted its headquarters to Singapore and scaled back its China operations. This included layoffs in mainland China, shutting down local operations, cancelling plans for a China-specific product, and ending technical collaboration discussions with Alibaba. However, despite attempts to distance itself from China, regulatory exposure may persist.
Fan also noted that there has been no confirmation that Manus' core team members have renounced Chinese nationality or that they are no longer subject to Chinese jurisdiction. He added that Manus' mainland-registered parent company, Butterfly Effect, remains with the founding team, and that the firm's early research and development was conducted in China. Other experts quoted in the report said AI agents are likely to be classified as "important information technology products and services" under Chinese regulations, which could bring the Meta-Manus deal within the scope of China's national security review of foreign investment.
Will Chinese regulators intervene? The deal between Meta and Manus now sits under a potential cloud of oversight. Cui Fan, deputy general secretary of the China Society for WTO Studies, warned that authorities will examine whether any technology deemed restricted under Chinese law was moved abroad without clearance.
Manus, founded in China in 2022, relocated its headquarters to Singapore before the acquisition. It raised $75 million in a Series B round in April 2025, led by Benchmark, valuing the company at roughly $500 million. The funding itself attracted attention, suggesting regulators are already alert to cross‑border flows.
Yet the specific criteria for a breach remain unclear, and no formal investigation has been announced. Unclear, for now. If regulators determine a violation, consequences could follow, but the process and thresholds are not publicly defined.
Meta’s purchase may proceed unhindered, or it could face additional compliance steps. The situation underscores the complexity of navigating export‑control regimes in a global AI market, and whether any enforcement action will materialize is still uncertain.
Further Reading
- Expert Close to MOFCOM: Meta–Manus Deal May Have Violated China's Technology Export Controls - Geopolitechs
- Meta–Manus Deal May Have Violated China's Technology Export ... - Geopolitechs
- The Meta-Manus Deal, The Day After - Business Engineer
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Common Questions Answered
Why are Beijing regulators scrutinizing the Manus–Meta partnership after the $75 million Series B funding?
Beijing regulators are concerned that Manus, originally founded in China in 2022, may have transferred restricted AI technology abroad without proper clearance after moving its headquarters to Singapore. The large foreign investment led by U.S. venture firm Benchmark also raises questions about compliance with Chinese export controls on advanced AI.
What role did Benchmark play in Manus's recent capital raise, and how might U.S. executive orders affect the deal?
Benchmark led the $75 million Series B round closed in April 2025, valuing Manus at roughly $500 million. U.S. executive orders that limit American investment in Chinese AI firms triggered a Treasury Department review, potentially complicating Benchmark's involvement and the broader Meta acquisition.
How does Manus's relocation to Singapore impact Chinese regulatory oversight of its technology transfer to Meta?
Manus moved its legal base to Singapore after its founding in Beijing, which could be seen as an attempt to sidestep Chinese export restrictions. Chinese authorities, as noted by Cui Fan, may examine whether any AI technology deemed restricted under Chinese law was moved abroad without proper approval.
What potential consequences could arise if Chinese authorities determine that restricted technology was transferred without clearance?
If Chinese regulators find that Manus exported prohibited AI technology to Meta without permission, they could impose fines, block the acquisition, or require the company to halt further technology transfers. Such actions would also signal stricter enforcement of China's export control policies on AI.