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Beijing May Block AI Company’s “De-China” Effort

Manus is an artificial intelligence company that develops large-model–based autonomous agent technologies and products designed to carry out complex tasks and workflows. Founded in March last year by its Beijing-based parent company, Butterfly Effect, Manus later relocated its headquarters to Singapore after receiving U.S. investment, laying off Chinese staff and fully exiting the China market to focus on overseas AI development. Observers widely believe the move was aimed at avoiding U.S. investment restrictions involving China and sidestepping Chinese regulatory oversight.

Meta announced late last year that it would acquire Manus at a valuation exceeding US$2 billion. After the deal became public, China’s technology and investment circles voiced strong praise for Manus’s trajectory, with many emphasizing the strategic importance of its decision to leave China. Analysts note, however, that Chinese authorities are wary of other technology firms following a similar “de-China” path.

China’s Ministry of Commerce has reportedly begun assessing whether Manus’s relocation of personnel and technology abroad, as well as its sale to Meta, should have required prior approval under China’s technology export regulations. Analysts caution that even if a company moves overseas, technologies developed in China may still fall under Chinese export control laws. If such technologies are deemed restricted, Beijing could intervene in the transaction—potentially invalidating contracts, imposing penalties, or, in extreme cases, blocking the acquisition altogether.

Source: Lianhe Zaobao, January 7, 2026
https://www.zaobao.com.sg/news/china/story20260107-8067327