China's Commerce Ministry announced on Thursday its intention to assess and investigate Meta's recent acquisition of the artificial intelligence (AI) startup Manus, a move that starkly highlights the ongoing technology rivalry between the United States and China. Meta, the California-based tech giant behind platforms like Facebook and Instagram, had announced its purchase of Manus last week, intending to expand its AI offerings across its diverse digital ecosystem.

This acquisition is particularly noteworthy as it represents a rare instance of a U.S. tech group acquiring an AI company with significant Chinese roots, occurring amidst increasing friction between Washington and Beijing. He Yadong, a spokesperson for China’s Commerce Ministry, informed reporters that the ministry would collaborate with relevant departments to determine whether Meta's acquisition of Manus complies with existing Chinese laws and regulations. He emphasized that all enterprises engaged in outward investment, technology export, data transfer, and cross-border mergers and acquisitions are legally obligated to adhere to Chinese legal frameworks.

While Manus is officially based in Singapore under the entity Butterfly Effect Pte, its foundational roots can be traced back to Beijing-registered entities established in China several years ago. Meta has stated that following the acquisition, there would be