Manus Meta’s news got a different reception in Washington and Beijing

Meta’s $2 billion acquisition of AI assistant platform Manus comes as no surprise that it’s caught in a tug-of-war – but not because of US regulators. He is confident the deal is legitimate despite doubts about Benchmark’s investment in Manus. However, Chinese regulators were informed unlike sanguineaccording to the Financial Times.

When Benchmark led a funding round for Manus earlier this year, the investment sparked immediate controversy. US Senator John Cornyn complained about the deal in X, and the investment prompted questions from the US Treasury Department about new rules limiting American investment in Chinese AI companies.

Those concerns are significant enough to spur Manus’ move from Beijing to Singapore — part of what has prompted the company’s “step-by-step disentanglement from China,” as a Chinese professor explained on WeChat last weekend.

Now the tables have turned. Chinese officials are reportedly examining whether the Meta deal violates technology export controls, which could have an impact on Beijing that it initially did not consider. Specifically, they checked whether Manus needed an export license when it moved its core team from China to Singapore – a move that has now largely earned the nickname “Singapore wash.” A new Wall Street Journal article speculated that China has “some private to influence the deal given Manus foothold in Singapore,” but that assessment may be premature.

The concern in Beijing is that this deal could encourage more Chinese startups to move physically to avoid domestic scrutiny. Winston Ma, a professor at New York University School of Law and a partner at Dragon Capital, told the Journal that the deal closed smoothly, “It made new road for a young AI startup in China.

History shows Beijing can act. China previously used the same export control mechanism to intervene in the TikTok ban that Trump attempted during his first term. The Chinese professor even warned on WeChat that Manus founders could face criminal liability if they export the restricted technology without permission.

Meanwhile, some US analysts hailed the acquisition as a win for Washington’s investment restrictions, arguing that showing China’s AI talent is damaging the American ecosystem. One expert told the FT that the deal shows “the US AI ecosystem is now more attractive.”

It’s too early to know if this affects Meta’s plans to integrate Manus’ AI agent software into its products, but this $2 billion deal may turn out to be more complicated than anticipated.