In a significant move impacting global tech mergers, the Chinese government has announced it will conduct a formal investigation into Meta Platforms Inc.'s acquisition of the artificial intelligence startup Manus. This deal, valued at over $2 billion, ranks as the third-largest acquisition in the history of the Facebook-parent company.
Beijing's Scrutiny: Compliance and Strategic Interests
According to reports, authorities in Beijing will meticulously scrutinise the transaction to ensure it complies with national regulations governing overseas investments and the export of technologies deemed strategic. The Ministry of Commerce (MOFCOM) stated it will assess whether the deal violates China's stringent export control and technology transfer laws.
"The Chinese government consistently supports enterprises in conducting mutually beneficial transnational operations and international technological cooperation in accordance with laws and regulations," stated Ministry of Commerce spokesperson He Yadong during a press briefing.
AI as a National Asset and Bargaining Power
This probe underscores Beijing's evolving perspective, where AI agents and intellectual property are increasingly viewed as critical national assets. Nick Patience, AI lead at The Futurum Group, notes that the investigation highlights this growing stance.
Analysts suggest the move also furnishes Beijing with significant "bargaining power" in high-profile US-led acquisitions. The likely outcome, according to experts, is not an outright block but a prolonged approval process coupled with potential strict conditions on how Manus's technology, developed in China, can be utilised globally. "The threat of stricter action gives Beijing bargaining power," Patience told CNBC.
Manus: An AI Powerhouse and Meta's Strategic Moves
Manus has established itself as a dominant force in the burgeoning "AI Agent" sector. The company achieved a historic milestone in December, claiming to be the fastest firm ever to reach $100 million in Annual Recurring Revenue (ARR).
This acquisition is part of Meta's aggressive expansion in artificial intelligence. Previously, the tech giant spent $14.3 billion for a 49% stake in Scale AI and acquired AI wearable startup Limitless. It also restructured its global operations, which included laying off the majority of its Beijing-based staff in July to pivot its focus towards a Singapore-led expansion strategy in the region.
