China to review Meta’s controversial $2bn Manus AI deal

China has initiated a formal review of Meta’s recent acquisition of Manus, an artificial intelligence startup with origins in China. This development highlights the scrutiny surrounding the international movement of advanced technology. The country’s commerce ministry has confirmed that it is evaluating whether the deal adheres to Chinese laws.

Meta announced late last year that it would acquire Manus, a rapidly growing AI company, as part of its effort to enhance AI tools across WhatsApp, Facebook, and Instagram. Although the financial details were not officially disclosed, the company is estimated to be valued at over $2 billion.

Chinese officials state that the review is not aimed solely at Meta but is part of a wider initiative concerning foreign investments, technology transfers, and acquisitions involving sensitive technologies. This assessment will include multiple government agencies.

Why China is stepping in

Manus was founded by Chinese entrepreneurs who developed some of its technology in China. The company later moved its headquarters to Singapore. This history means that China’s regulations still affect the company, even though it no longer operates there.

Read also: Meta’s $2bn bet on Manus AI may improve WhatsApp, Facebook and Instagram experience

Certain technologies, especially advanced AI systems, have specific rules regarding their export from China. The authorities want to find out if Manus shared its technology or expertise with other countries without the necessary approvals. This is the focus of the review.

China’s main concern is about compliance, not who owns the company. Meta has confirmed that after the deal is completed, Manus will have no Chinese ownership and will permanently stop operations in China.

What this means for Meta and the AI industry

For Meta, the review brings uncertainty about when things will happen and how they will fit together, but it doesn’t automatically put the deal at risk. Reviews like this can end in three ways: they can be approved, they can come with extra conditions, or they can be delayed, depending on what regulators discover.

The case also highlights how AI companies are increasingly caught between competing regulatory systems. A startup can be global in ambition but still tied to the laws of where its technology was first built.

The current situation in the tech industry demonstrates that AI is no longer regarded as just another piece of software. Governments now view it as strategic infrastructure, akin to energy or telecommunications, and are taking steps to regulate how it is distributed and sold.

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