China is investigating Meta's recent acquisition of AI start-up Manus, raising concerns about potential violations of technology export laws. The investigation, confirmed by Ministry of Commerce spokesman He Yadong on Thursday, centers on whether Meta circumvented regulations requiring government approval for the export of certain technologies, including interactive AI systems.
The financial details of Meta's acquisition of Manus remain undisclosed. However, the investigation's focus suggests that the deal was significant enough to warrant scrutiny under Chinese law. These regulations stipulate that the Chinese government must approve the export of specific technologies, particularly those related to artificial intelligence.
This investigation arrives at a time of heightened global competition in the AI sector. Manus, despite being based in Singapore, was founded by Chinese engineers and had a Chinese parent company. The company gained prominence in Silicon Valley last March after unveiling an AI agent capable of independently building websites and performing basic coding tasks. This development coincided with growing anxiety within the U.S. tech industry over the emergence of Chinese AI companies like DeepSeek, which had developed a high-performing AI system at a fraction of the cost compared to leading U.S. firms.
The Chinese government has previously invoked similar regulations to assert its authority over the sale of TikTok's U.S. operations, owned by ByteDance. This precedent suggests that Beijing is prepared to actively enforce its technology export laws, particularly when it perceives a strategic interest at stake. Meta declined to comment on the investigation, and Manus did not respond to requests for comment.
The outcome of this investigation could have significant implications for future cross-border AI acquisitions. It highlights the increasing complexity of international business transactions involving advanced technologies and underscores the need for companies to navigate a complex web of regulatory requirements. The investigation also serves as a reminder that China is actively seeking to control the flow of its AI technology and expertise, potentially reshaping the global AI landscape.
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