China has reiterated its support for cross-border technology deals that comply with legal and regulatory frameworks, even as authorities intensify their review of Meta’s reported US$2 billion acquisition of AI startup Manus. The development reflects Beijing’s attempt to balance openness to global collaboration with tighter oversight of sensitive technology transfers.
The ongoing review is focused on whether the deal violates China’s investment and technology export regulations. Regulators are examining concerns around the potential transfer of advanced artificial intelligence capabilities and data outside the country, particularly given Manus’s origins as a China-founded company before relocating overseas.
Officials have emphasized that while international cooperation in technology is encouraged, all transactions must adhere strictly to domestic laws. The statement comes amid growing scrutiny of high-value AI deals, especially those involving US firms acquiring companies with Chinese roots. Authorities are increasingly cautious about safeguarding critical technologies and ensuring compliance with cross-border investment rules.
The case has also drawn attention due to reports that two co-founders of Manus have been restricted from leaving China as part of the regulatory review process. This move highlights the seriousness of the investigation and signals a more assertive approach by Chinese regulators in overseeing outbound technology deals.
At the centre of the issue is the broader concern over strategic technologies being transferred abroad, a challenge that has intensified amid global competition in artificial intelligence. The Manus deal, involving an AI agent platform capable of executing complex tasks autonomously, has become a focal point in debates over national security, data governance, and innovation control.
The situation also underscores the declining effectiveness of strategies such as relocating headquarters to jurisdictions like Singapore to ease regulatory scrutiny. Chinese authorities appear increasingly willing to look beyond corporate structures and focus on the origin and nature of technology assets when evaluating such deals.
As the review continues, the outcome could set an important precedent for future cross-border acquisitions in the AI sector. It may influence how startups structure their operations and how global technology firms approach investments involving sensitive or strategically significant innovations.
