China has launched an official regulatory assessment of Meta’s acquisition of Manus, an artificial intelligence startup with historical ties to China. The move reflects intensifying global oversight of cross-border AI transactions and sensitive technology flows.
China’s Ministry of Commerce confirmed that the deal is being examined to ensure it aligns with national regulations governing foreign investment and the export of advanced technologies.
Meta’s High-Value AI Acquisition Draws Attention
Meta revealed late last year that it had agreed to acquire Manus as part of a broader push to strengthen AI capabilities across its major platforms, including WhatsApp, Facebook, and Instagram.
Although Meta did not publicly disclose the transaction value, industry estimates place Manus’ valuation at more than $2 billion, positioning the deal among Meta’s most substantial investments in artificial intelligence.
Regulators Say Review Is Broader Than Meta
Chinese officials emphasised that the investigation is not directed solely at Meta, but forms part of a wider regulatory effort to monitor foreign acquisitions, technology exports, and strategic investments involving cutting-edge technologies.
Multiple government agencies are involved in the review, which will focus on whether Manus complied with Chinese regulations during its relocation and global expansion.
Company’s Origins Trigger Ongoing Oversight
Manus was established by Chinese founders, with parts of its AI technology originally developed within China, before the company later moved its headquarters to Singapore.
Despite the relocation, Chinese laws may still apply, as certain high-end AI technologies fall under strict export control frameworks. Regulators are investigating whether any proprietary technology, expertise, or intellectual property was transferred abroad without appropriate authorisation.
Authorities have stressed that the review centres on legal and regulatory compliance, rather than ownership or geopolitical considerations.
Meta has stated that following completion of the acquisition, Manus will have no remaining Chinese ownership and will fully discontinue operations in China.
What This Means for Meta and the AI Industry
For Meta, the review introduces potential delays and uncertainty around integration timelines, but it does not automatically jeopardise the transaction.
Regulatory reviews of this nature typically result in one of three outcomes:
- Approval without conditions
- Approval subject to regulatory requirements
- Extended review or procedural delays
The situation illustrates how AI startups can remain subject to the laws of jurisdictions where their technologies were initially developed, even after relocating operations overseas.
Governments Reclassify AI as Strategic Infrastructure
Analysts say the case highlights a growing global trend: artificial intelligence is increasingly viewed as strategic national infrastructure, comparable to energy systems, telecommunications networks, or defence technologies.
As a result, governments are strengthening oversight of how AI tools are created, transferred, and commercialised across borders, particularly when national security or economic competitiveness is at stake.
Conclusion
China’s review of Meta’s acquisition of Manus underscores the rising regulatory and geopolitical complexity shaping the global AI industry. As artificial intelligence becomes central to national strategies worldwide, technology companies pursuing international acquisitions are likely to face deeper scrutiny. The outcome of this case could influence how future cross-border AI deals are structured and approved.
