According to a report by the Financial Times on Wednesday, Chinese authorities are reviewing whether Meta Platforms’ (NASDAQ: META) planned US$2 billion acquisition of the artificial intelligence platform Manus violates China’s technology export control regulations, a move that could give Beijing leverage over the high-profile deal.
The transaction, announced last week, represents a rare case of a U.S. company acquiring a cutting-edge AI start-up with Chinese links at a time of intensifying competition between China and the United States in advanced technologies.
Citing two people familiar with the matter, the Financial Times reported that China’s Ministry of Commerce has begun assessing whether Manus’s relocation of staff and technology to Singapore, followed by its sale to Meta, requires an export licence under Chinese law.
The report said the review remains at an early stage and may not lead to a formal investigation. However, export licence requirements could provide Beijing with an opportunity to influence the transaction and, in extreme cases, potentially block it.
Manus is an AI-powered assistant operated by Butterfly Effect Pte Ltd (Butterfly Effect，蝴蝶效应公司), while part of its technology was developed by a sister company registered in Beijing. Meta plans to integrate the software into its own products. Meta’s services are blocked in China.