China Blocks Meta's £1.48 Billion Manus AI Acquisition After Regulatory Scrutiny
Beijing's National Development and Reform Commission has blocked Meta's acquisition of the AI start-up Manus. The deal, announced in late December and estimated to be worth around GBP#1.48 billion, aimed to integrate Manus's autonomous agents into Meta's AI operations.
Reports confirm that the Chinese regulatory body prohibited foreign investment in the transaction, explicitly requiring the involved parties to "withdraw the acquisition transaction". A Meta spokesperson maintained that "the transaction complied fully with applicable law" and anticipated "an appropriate resolution to the inquiry."
Manus, though now based in Singapore, originated in China, placing it under the purview of Chinese regulatory control. China maintains stringent laws governing its technology sector, including controls on the export or sale of tech firms to foreign entities. This regulatory framework notably necessitated Beijing's approval for the arrangement that kept TikTok operational in the US under President Donald Trump's administration.
The prohibition follows months of regulatory review, during which Manus's two co-founders were reportedly prevented from leaving China. Meta previously stated that Manus's team was "deeply integrated into Meta," suggesting potential operational difficulties if the acquisition is unwound.
This decision also unfolds amidst ongoing geopolitical tensions between the US and China, particularly concerning technological dominance. The White House recently announced closer collaboration with US AI firms to counter "industrial-scale campaigns" of intellectual property theft, specifically citing "foreign entities, principally based in China," for replicating US AI models. A representative from China's US embassy criticised "the unjustified suppression of Chinese companies by the US," asserting China's evolving role as a global innovation hub.
