Chinese State Media: Manus's 'Laundry-style' Expansion Non-compliant
Chinese authorities blocked Meta's acquisition of AI startup Manus, labeling its attempt to move core assets to Singapore as 'laundry-style overseas expansion' that violates national security rules.
📋 Article Processing Timeline
- 📰 Published: April 28, 2026 at 17:46
- 🔍 Collected: April 28, 2026 at 18:02 (15 min after Published)
- 🤖 AI Analyzed: April 28, 2026 at 19:40 (1h 37m after Collected)
Following China's announcement yesterday to ban Meta, the parent company of Facebook, from acquiring the Chinese-backed AI startup Manus, state media CCTV published a commentary today stating that what the Chinese side is banning is the non-compliant practice of 'laundry-style overseas expansion.' The report pointed out that this transaction would have resulted in the overall transfer of Manus's core business from within China to abroad, leaving only non-core operations in China.
The report stated that the Manus merger involves international environments, key technologies, data security, and capital operations, triggering China's foreign investment security review, which is 'rare but very typical.' It quoted an unnamed Chinese lawyer saying that the case involves transferring AI assets to Singapore and finally selling them to Meta. Under China's 'Foreign Investment Security Review Measures,' such transactions remain under regulatory scrutiny even if the initial move was between related entities controlled by the founder.
Manus reportedly moved its headquarters to Singapore while its core business remained in China, subsequently transferring personnel and technology abroad. The domestic Manus company was gradually stripped of its core assets. The report called this 'laundry-style overseas expansion' and also highlighted 'security risks during openness,' noting that Manus's early R&D and team were in China, meaning its data and technology flows are inherently linked to Chinese interests. On the 27th, the office under the NDRC officially decided to ban the investment by Meta and required the parties to revoke the transaction.
The report stated that the Manus merger involves international environments, key technologies, data security, and capital operations, triggering China's foreign investment security review, which is 'rare but very typical.' It quoted an unnamed Chinese lawyer saying that the case involves transferring AI assets to Singapore and finally selling them to Meta. Under China's 'Foreign Investment Security Review Measures,' such transactions remain under regulatory scrutiny even if the initial move was between related entities controlled by the founder.
Manus reportedly moved its headquarters to Singapore while its core business remained in China, subsequently transferring personnel and technology abroad. The domestic Manus company was gradually stripped of its core assets. The report called this 'laundry-style overseas expansion' and also highlighted 'security risks during openness,' noting that Manus's early R&D and team were in China, meaning its data and technology flows are inherently linked to Chinese interests. On the 27th, the office under the NDRC officially decided to ban the investment by Meta and required the parties to revoke the transaction.