China to probe Meta’s acquisition of artificial intelligence startup Manus
HONG KONG– China said on Thursday it would evaluate and investigate Meta’s acquisition of artificial intelligence startup Manus, underscoring its technological rivalry with the United States.
Meta announced last week that it was buying Manus, a Singapore-based company of Chinese origin, as the California tech giant behind Facebook and Instagram expands its AI offerings across its platforms.
It is a rare acquisition by an American technology group of an AI company of Chinese origin, at a time of increased friction between Washington and Beijing.
On Thursday, Chinese Commerce Ministry spokesperson He Yadong told reporters that it would work with relevant departments to evaluate and investigate whether Meta’s acquisition of Manus complies with Chinese laws and regulations.
All companies engaged in overseas investments, technology exports, data transfers and cross-border mergers and acquisitions must comply with Chinese laws, he said.
Meta and Manus did not immediately respond to requests for comment.
“Security has become the main concern of Chinese policymakers,” said Gary Ng, senior Asia-Pacific economist at investment bank Natixis. “Any technology transfer that could give the United States a competitive advantage will be subject to increased scrutiny.”
Although the company behind Manus is Singapore-based Butterfly Effect Pte, its roots trace back to entities registered in Beijing and founded in China a few years ago.
Meta said last week that there would be “no continued Chinese participation in Manus AI” after the acquisition, and that Manus would cease its services and operations in China. Meta’s platforms, including Facebook and Instagram, are still banned in China under the country’s “Great Firewall.”
Manus said it would continue to operate in Singapore, where most of its employees are now based.
Cui Fan, a professor at Beijing University of International Business and Economics, raised questions in a public post on Chinese social media site WeChat regarding the acquisition’s compliance with Chinese laws and technology export controls.
“A key question is whether technologies banned or restricted for export under Chinese laws and regulations are exported without a license,” he wrote.
The “general purpose” AI agent launched by Manus last year can autonomously perform complex, multi-step work, such as breaking tasks into smaller steps. It can be used for free but also offers paid subscription plans.
Last month, Manus said its annual recurring revenue had reached more than $100 million.
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Shihuan Chen, an Associated Press researcher in Beijing, contributed to this report.
