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China’s Ministry of Commerce says it will conduct a review and investigation into Meta Platforms’ US$2.5 billion acquisition of Manus, examining whether the deal complies with export controls and technology transfer rules, underscoring Beijing’s determination to assert oversight over cross-border technology transactions.
Spokesperson He Yadong said at a briefing on Thursday that the ministry would work with other Chinese regulators to assess whether the deal, announced by Meta and Manus a week earlier, was consistent with China’s regulations on export controls, technology imports and exports, and external investments.
Beijing’s intervention comes amid growing concerns about the outflow of artificial intelligence technology and talent, following Manus’ relocation from China to Singapore last summer. The relocation changed the nominal domicile of Manus, making it possible for the US tech giant to make an offer to take over the start-up, but it also highlighted Beijing’s unease over the exodus of AI expertise and its resolve to maintain a say in technology transfers.
Although Manus was officially registered in Singapore, the company developed its AI products in mainland China, giving Chinese authorities legal grounds to scrutinise whether sensitive technologies were transferred abroad.
“The Chinese government has always supported businesses to conduct mutually beneficial cross-border operations and international technology cooperation,” He said. “But it should be noted that the external investment, technology exports, data exports and cross-border acquisitions by companies must comply with Chinese laws and regulations and go through due process.”
