HONG KONG (AP) — China announced on Thursday that it will investigate Meta’s acquisition of the Singapore-based artificial intelligence startup Manus, a move that underscores the ongoing technology rivalry between the U.S. and China.
Meta, the owner of platforms like Facebook and Instagram, revealed last week that it is acquiring Manus to enhance its AI capabilities. This acquisition is notable as it involves a U.S. tech firm purchasing an AI company with Chinese ties amid escalating tensions between Washington and Beijing.
During a press briefing, China’s Commerce Ministry spokesperson He Yadong stated that the government would collaborate with relevant departments to assess whether the acquisition complies with Chinese laws and regulations. He emphasized that any company engaged in outward investment, technology export, data transfer, or cross-border mergers and acquisitions must adhere to Chinese legal standards.
As the scrutiny of technology transfers intensifies, Gary Ng, a senior economist for Asia Pacific at investment bank Natixis, commented, “Security has become the top concern for Chinese policymakers. Any tech transfer that could give the U.S. an edge in competitiveness will be heavily scrutinized.”
Though Manus is based in Singapore under the company Butterfly Effect Pte, its origins stem from entities established in Beijing. Following the acquisition, Meta stated there would be “no continuing Chinese ownership interests in Manus AI,” and the startup would cease operations in China, where Meta’s platforms are already blocked under the country’s strict internet regulations.
Manus has confirmed that it will maintain its operations in Singapore, where most of its workforce is currently located. However, questions surrounding the acquisition’s legality and adherence to technology export controls have arisen. Cui Fan, a professor at the University of International Business and Economics in Beijing, raised concerns on the Chinese social media platform WeChat, questioning whether any restricted technologies may be exported without the necessary licenses.
Manus is known for its “general-purpose” AI agent, released last year, which autonomously carries out complex tasks by breaking them down into smaller steps. The software is available for free, with additional paid subscription options, and Manus recently reported that its annual recurring revenue had surpassed $100 million.
The implications of this acquisition extend beyond the immediate business landscape, reflecting broader geopolitical tensions that influence international technology dealings. As China intensifies its assessment of cross-border tech transactions, the outcome of this investigation could set a precedent for future mergers and acquisitions involving U.S. tech companies and entities with Chinese connections. The technology sector remains a critical area of competition, where policy decisions will likely shape the global landscape for years to come.
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