Chinese regulators have reportedly opened an initial review into Meta Platforms Inc.’s proposed acquisition of artificial intelligence startup Manus, raising questions over how cross-border AI deals are assessed under national security and technology export rules.
The transaction, valued at $2 billion and announced in December, is now being examined by Chinese officials to determine whether any regulations were breached.
Experts said the review could complicate the deal if authorities later identify violations.
The examination, as reported by Bloomberg, is still at an early stage, and there is no certainty that Beijing will intervene.
Still, the move underlines the growing regulatory focus on advanced AI technologies developed in China, even when companies relocate their headquarters overseas.
What regulators are examining
Although Manus is now headquartered in Singapore, the review is centred on the artificial intelligence technology the company developed while it was based in China.
Officials are assessing whether the transfer of that technology through the acquisition could fall foul of national security or technology export rules.
According to the report, experts said one of the things regulators are paying attention to is Manus’s agentic AI systems.
These tools are designed to carry out tasks for users, such as booking flights or managing digital workflows.
It remains unclear whether Beijing will ultimately classify this technology as strategically sensitive.
Potential paths for the deal
In some cases, early-stage reviews develop into formal probes if regulators believe there may have been breaches of existing rules.
If that happens, outcomes can range from financial penalties to demands that companies meet specific conditions before a transaction is approved.
There is also a possibility that regulators will decide the Manus deal does not warrant intervention.
For now, the process remains informal, with no public findings or official statements from Chinese authorities.
The uncertainty adds another layer of risk for Meta as it seeks to expand its AI capabilities through acquisitions.
Any requirement to alter deal terms or limit technology transfers could affect how the company integrates Manus’s technology into its broader AI strategy.
Broader context for Beijing
The review of Meta’s acquisition comes as Beijing continues to scrutinise high-profile technology transactions involving Chinese-developed assets.
Authorities have taken a close interest in deals that involve the movement of data, algorithms, or advanced AI systems outside the country.
A notable parallel is Beijing’s ongoing examination of ByteDance Ltd.’s proposed sale of TikTok US to American investors.
That transaction has yet to receive formal approval from Chinese officials, highlighting the cautious approach regulators are taking toward overseas transfers of sensitive technology.
Together, these cases illustrate how China is increasingly asserting oversight over outbound technology deals, particularly in sectors seen as strategically important.
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