China is ready to start an investigation against the US tech giant’s acquisition of artificial intelligence startup Manus. The startup is based in Singapore, but its origins are from China. Therefore, China’s interference is legal, and highlights the intensified rivalry scenario between these two countries.
Last week Meta announced it would acquire Manus to expand its AI offerings across platforms. The US tech giant has maintained all the transactions comply with international norms and Manus doesn’t belong to China at this point. Still, China’s intervention shows the sensitivity of cross-border acquisition. Chinese authorities have framed the review as a routine legal assessment, but analysts say it reflects deeper geopolitical and economic tensions.
China’s Ministry of Commerce has confirmed that they are scrutinizing Meta’s acquisition of Manus to determine whether the deal violates Chinese laws related to foreign investment, technology exports, data security, and mergers and acquisitions. Officials of the country has stated that companies that are involved in cross-border transactions must strictly comply with domestic regulations and may face scrutiny if approvals were bypassed.
The examination will mostly assess whether Manus has transferred any sensitive AI technology or intellectual property outside China without proper authorization. Chinese officials have further mentioned that multiple government departments could be involved in the review, which shows the seriousness of the entire matter.
About this scenario, Meta or Manus haven't stated anything officially. However, last week Meta confirmed that after the acquisition process is done, Manus would discontinue its services and operations in China.
China's decision of reviewing Meta’s Manus deal highlights the broader US-China rivalry over dominance in emerging technologies. Artificial Intelligence has become one of the most prominent battlegrounds for companies to fight and establish power.
The history of the rivalry dates back. While Washington has imposed export restrictions on advanced chips and AI tools, Beijing has reacted by tightening its control on technology transfers abroad and on foreign investments that are linked to China.
Considering this context, Meta’s decision to acquire an AI startup with Chinese roots stands out as an exception.
China’s investigation into Meta’s Manus acquisition highlights how geopolitical scenes now heavily influence global technology deals. Although the investigation is yet to come up with a conclusion, it may well lead to a situation where Beijing deals with foreign acquisitions related to sensitive technologies in a particular manner.
The situation is an eye-opener for international technology firms that they will have to increasingly deal with complex regulatory environments where business strategy, national security, and international rivalry are mingling more and more.