China reviews Meta’s deal to buy Manus

Though Manus is now headquartered in Singapore, officials are reportedly focusing on artificial intelligence technology developed by the Chinese-founded company while based in the country

Chinese officials are looking into whether Meta Platforms’ acquisition of artificial intelligence (AI) startup Manus violated national security or technology export regulations, an initial review that could hinder the deal down the road if officials determine wrongdoing.

Regulators have begun a review of the $2 billion transaction unveiled in December, according to sources familiar with the matter. Though Manus is now headquartered in Singapore, officials are focusing on artificial intelligence technology developed by the Chinese-founded company while based in the country, the sources further said, asking to remain anonymous, discussing a crucial situation.

It is unclear whether Beijing will consider Manus’s agentic AI technology, designed to help users perform tasks such as booking flights, vital to Chinese national security. The review, first reported by the Financial Times, is in its early stages and regulators might ultimately choose not to intervene, the sources further added.

In some cases, however, such reviews can become formal probes and – if violations are alleged – potentially result in penalties or a demand for certain conditions before deal approval, the sources said. Beijing has also been scrutinising ByteDance’s sale of TikTok US to American investors, which officials have not yet formally approved.

Representatives for Manus did not comment. China’s commerce ministry and Meta also did not comment on the matter.

Beijing has in recent years aggressively pushed domestic firms to develop technology to replace American software and circuitry, including in artificial intelligence. Much of that effort, however, has focused on fundamental hardware such as AI accelerators and other semiconductors.