Beijing intensifies scrutiny of Meta’s $2 billion Manus acquisition - Bloomberg

Investing.com -- Beijing is intensifying its investigation into Meta Platforms Inc’s $2 billion acquisition of Manus, a move that signals heightened regulatory risk for the social media giant. According to reporting from Bloomberg, citing people familiar with the matter, officials are now examining potential violations of rules governing cross-border currency flows, tax accounting, and overseas investments.

The central inquiry initially focused on whether the December takeover of the agentic AI startup compromised Chinese technology or national security. Regulators are particularly concerned about whether sensitive data from the firm, which originated in Beijing and Wuhan, was improperly shared with the American company.

Meta CEO Mark Zuckerberg led the company to spend immensely during 2025 in hopes of catching up in the AI race, specifically via acquisitions and infrastructure projects. The Manus deal encapsulates his firm’s current focus on building autonomous AI services, and the multibillion-dollar bet has raised questions in China about whether a major U.S. firm is gaining control over advanced technology compared by some to Chinese open source darling DeepSeek.

The startup’s relocation of staff to Singapore in July caught the attention of officials who raised private concerns regarding cross-border data transfers. This transition highlights the industry practice of "Singapore-washing," where companies of Chinese origin move their headquarters to the city-state to facilitate global expansion.

Manus has focused on international markets from its inception, and its primary AI product has never been available within China, Bloomberg reported. However, regulators reportedly refrained from an earlier probe on the presumption that the company would maintain close ties with its home country.

The investigation remains preliminary, and the difficulty of clawing back funds from backers may make it practically challenging for Beijing to unwind the transaction. Nevertheless, the broadening review underscores the significant geopolitical hurdles facing American technology firms attempting to acquire assets with Chinese roots.

Meta stock fell initially during Friday trade following the news, as the deal has been seen as an important step in its AI efforts. It is now trading up 2.1% as investors brush off the regulatory concerns, most likely due to the challenge Beijing would find in trying to undo the deal.

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