Meta spent 2 billion on a Chinese AI startup. China is clear that it was a conspiracy

With China and the United States dancing the dance of artificial intelligenceboth countries and companies want to get the best cards for their decks. Meta is investing millions in the development of AI and, even so, it seems to be lagging behind. To turn the tables, he closed 2025 with a $2 billion purchase: that of a Chinese startup called Manus. The operation was so notorious that the Chinese government itself raised an eyebrow and undertook an investigation to see what was happening there. And they are already clear.

It was a conspiracy.

The Manus case. Although it has rained a lot and these last few months in China AI companies have come out from under the stones, during the first half of 2025 the proper name was that of deepseek. It was the great competition from the Western OpenAI or Google Gemini, but in March something that looked like an AI agent began to appear: Manus. That’s how they sold italthough it was really a deep investigation mode that helps you perform actions, but does not do them for you.

It didn’t matter: the expectation was there and, although there were doubts about his behavior and limits, Manus began to move a lot of money (more than 100 million in estimated income) and attract attention from the big players. One of them was Meta, who took over the company.

The purchase. A good question is how China let something like this slip away for a technological and strategic rival to buy. And it’s a good question, but the answer is that, at some point, Manus stopped being a Chinese startup. In the middle of last year, Manus moved to Singapore, allowing the company to bypass export and import controls imposed on China. To the not having your own LLMthey depended on others like Claude which they could more easily access from outside China.

This already set off alarm bells in the Government, but with the purchase of Meta the bells echoed. China put to work to various organizations to see what was really happening, the largest of them being the Chinese National Security Commission, which is commanded by President Xi Jinping himself. The reports prepared by this body are directly supervised by the leaders of the Communist Party, so it is a voice that must be taken into account.

Conspiracy. And the result of the investigation is clear. As they comment in Financial Timesthe conclusion is that Meta’s acquisition of Manus is a conspiratorial attempt to try to undermine China’s technological capabilities. These are big words that do not remain in a vacuum, since the founders of Manus – Xiao Hong and Ji Yichao – were summoned by the NDRC last March to address issues such as possible violations of foreign investment rules in China.

He did not stay for a meeting and, as the FT points out, both have been prohibited from leaving the country during the review process. In fact, there are sources that suggest that Manus would be considering backing out of the agreement, but even so, it is not clear that the Chinese authorities will be satisfied. For his part, Meta points out that they did everything according to the law and it seems that he has already started to integrate Manus systems into their tools, so taking that step back would be very complex.

And now… what. That the National Security Commission has classified the case as “conspiracy” is something serious, since it was the trigger for a broader review that involves more agencies in the country that are currently reviewing everything. And the underlying problem is the speed with which everything happened. Manus took off and, just four months later, they moved everything to Singapore to break away from China just before the purchase of an American company.

The investigation is shaking the Chinese technology sector because it is not the first time something like this has happened. Although on a smaller scale, it is an operation called ‘Singapore washing’ in which startups founded by Chinese move to the city-state to bypass China’s control and have a more direct line with the United States. The problem is that, at a time when the commercial and strategic war has intensified, calling the Manus case a “conspiracy” sets a precedent.

One in which it is stated that China does not want to let artificial intelligence talent and technology escape because this advance has become one of the country’s strategic legs for the next five years. We will see what happens when the case is resolved, but it is clear that Beijing’s objective, like Washington’s, is to prevent its assets from escaping, and Manus can be the example for national technology companies do not follow a similar model in the future.

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