HONG KONG (AP) 鈥� China said on Thursday it would assess and investigate Meta鈥檚 acquisition of artificial intelligence startup Manus, in a move highlighting its technology rivalry with the U.S..
Meta announced last week it was buying Manus, which is Singapore-based with Chinese roots, as the California tech giant behind Facebook and Instagram expands its AI offerings across its platforms.
It is a rare acquisition by a U.S. tech group of an AI company with Chinese roots, at a time of between Washington and Beijing.
On Thursday, China鈥檚 Commerce Ministry spokesperson He Yadong told reporters that it would work with relevant departments to assess and investigate whether Meta鈥檚 acquisition of Manus is consistent with Chinese laws and regulations.
Any enterprises engaging in outward investment, technology export, data transfer and cross-border mergers and acquisitions must comply with Chinese laws, He said.
Meta and Manus did not immediately reply to requests for comment.
鈥淪ecurity has become the top concern for Chinese policymakers,鈥� said Gary Ng, a senior economist for Asia Pacific at investment bank Natixis. 鈥淎ny tech transfer that could give the U.S. an edge in competitiveness will be heavily scrutinized.鈥�
While the company behind Manus is Singapore-based Butterfly Effect Pte, its roots can be traced back to Beijing-registered entities which were founded in China a few years ago.
Meta there would be 鈥渘o continuing Chinese ownership interests in Manus AI鈥� following the acquisition, and that Manus would discontinue its services and operations in China. Meta鈥檚 platforms including Facebook and Instagram are still banned in China under the country鈥檚 鈥淕reat Firewall鈥�.
Manus said it would continue to operate in Singapore, where most of its employees are now based.
Cui Fan, a professor at the University of International Business and Economics in Beijing, raised questions in a public post on the Chinese social media site WeChat over the acquisition鈥檚 compliance with Chinese laws and technology export controls.
鈥淎 key question is whether any technologies prohibited or restricted from export under Chinese laws and regulations are exported without a license,鈥� he wrote.
The 鈥済eneral-purpose鈥� AI agent released by Manus last year can autonomously perform multi-step complex work such as breaking down tasks into smaller steps. It can be used for free but also offers paid subscription packages.
Last month, Manus said its annual recurring revenue had reached more than $100 million.
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Associated Press researcher Shihuan Chen in Beijing contributed to this report.
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