China has formally initiated a comprehensive review of Meta’s recent acquisition of Manus, an artificial intelligence startup originally founded in China. This development underscores the escalating international scrutiny surrounding the movement and transfer of advanced technologies. The Chinese commerce ministry has confirmed its evaluation of whether this significant deal adheres to the country's stringent legal frameworks governing such transactions. Meta had previously announced its intent to acquire Manus late last year, aiming to integrate the rapidly growing AI company's capabilities to enhance its AI tools across its major platforms, including WhatsApp, Facebook, and Instagram. While specific financial details were not officially disclosed, the company is estimated to be valued at more than $2 billion.

Chinese officials have clarified that this review is not an isolated incident targeting Meta specifically, but rather a component of a broader governmental initiative concerning foreign investments, technology transfers, and acquisitions that involve sensitive technologies. This extensive assessment is expected to involve multiple government agencies, working collaboratively to ensure compliance. The primary reason for China's intervention stems from Manus's historical ties; the company was founded by Chinese entrepreneurs who developed a portion of its core technology within China before the company later relocated its headquarters to Singapore. This origin story means that despite its current operational base outside mainland China, the company's past activities and technology development remain subject to Chinese regulations.

A central focus of the review is compliance with specific rules governing the export of certain technologies, particularly advanced AI systems, from China. The authorities are investigating whether Manus shared its proprietary technology or expertise with other countries without obtaining the necessary governmental approvals. China’s main concern is squarely on regulatory compliance rather than the ultimate ownership of the company post-acquisition. In response, Meta has confirmed that once the acquisition is finalized, Manus will no longer have any Chinese ownership and will permanently cease all operations within China, aiming to address the regulatory concerns.

For Meta, this formal review introduces a degree of uncertainty regarding the timeline and integration process of the acquisition, though it does not automatically jeopardize the entire deal. Reviews of this nature typically conclude in one of three ways: outright approval, approval accompanied by additional conditions or stipulations, or a delay, depending on the findings of the regulators. This case also serves as a stark illustration of how AI companies are increasingly finding themselves caught between complex and often competing international regulatory systems. A startup, regardless of its global aspirations, may remain intrinsically linked to the laws and regulations of the region where its foundational technology was initially developed. The current landscape in the tech industry definitively shows that artificial intelligence is no longer perceived merely as another piece of software; governments worldwide are now treating it as strategic infrastructure, on par with critical sectors like energy or telecommunications, and are actively establishing frameworks to regulate its distribution, development, and sale.