Insider: China is reviewing Meta's $20 billion acquisition of Manu to see if there have been any violations

BlockBeats News, January 7th, according to the Financial Times, citing people familiar with the matter, Chinese officials are reviewing Meta's $2 billion acquisition of the artificial intelligence platform Manus, assessing whether there are potential export control violations, and determining whether transferring Manus's employees and technology to Singapore would require a Chinese export license. Although the current review is still in the early stages and may not necessarily lead to a formal investigation, the requirement for a license could provide China with a way to influence the transaction, including potentially trying to compel parties to abandon the deal in extreme cases.

One of the people familiar with the matter said that the reason this deal has attracted official attention is the concern that it might incentivize Chinese startups to move entities out of China to evade domestic regulation. However, a second person familiar with the matter noted that Manus's product (an AI assistant) is not seen as a critically important core technology for China, reducing the urgency of intervention.

The Financial Times stated that opening a second headquarters or office in Singapore has become very common among Chinese companies seeking global clients, to the extent that this practice is termed "Singapore cleansing," referring to businesses trying to shed the geopolitical sensitivities associated with operating in China.