China has intervened in Meta’s acquisition of AI company Manus and is demanding that the deal be reversed. With this move, Beijing is taking a striking step in the increasingly intense technological power struggle with the United States.
This is reported by the Financial Times. The acquisition, announced late last year, was valued at approximately $2 billion and was one of the American tech giant’s largest purchases. Meta had already begun integrating Manus technology into its own products. That is precisely what makes the Chinese authorities’ decision exceptional. Intervention at such an advanced stage is rare, especially when it involves two non-Chinese companies.
Manus was launched less than fifteen months ago. The chatbot, which can execute commands directly, was founded by Xiao Hong. In just eight months, the company is said to have generated more than $100 million in revenue.
According to those involved, it is unclear how the transaction can be practically undone. Reversing it means that cash flows must be reviewed, ownership must be restructured, and Meta must stop using the technology. The latter is complex, as parts of Manus have already been integrated into existing systems.
Scrutiny of Companies with Chinese Origins
The measure appears to be aimed not only at this specific deal but also intended as a signal. Beijing wants to make it clear that foreign acquisitions of technology companies with Chinese roots will be subject to stricter scrutiny. Sources suggest that the message is primarily intended to discourage similar transactions.
The tensions surrounding the decision play out against a broader geopolitical backdrop. A meeting is scheduled soon between U.S. President Donald Trump and Chinese leader Xi Jinping, with technological and trade conflicts taking center stage. Washington has criticized the Chinese approach, which is viewed as undesirable interference in international business activities.
The investigation into the acquisition began earlier this year. Chinese regulators examined whether the transaction violated rules regarding foreign investment and technology control. Multiple agencies were involved, including economic planners and competition authorities.
Manus develops software that allows users to build AI agents capable of performing complex tasks autonomously. The company was founded in China but moved to Singapore following a funding round with U.S. investors. Shortly thereafter, Meta acquired it as part of its strategy to gain ground on competitors in the AI sector.
The Chinese government had previously criticized the deal and warned that it could weaken the country’s technological position. Measures were also taken, such as restrictions on the founders involved from leaving the country during the investigation.
China puts pressure on Meta with potential measures
If Meta fails to fully reverse the acquisition, sanctions loom. These could range from restrictions on operations in China to legal action against the individuals involved.
The Manus case is not an isolated incident. Beijing has frequently intervened in international transactions involving strategic technology. In doing so, China underscores its desire to maintain greater control over the development and dissemination of advanced technologies, particularly when they are geopolitically sensitive.