China’s Review of Meta’s $2bn AI Acquisition Signals a Tougher Stance on Foreign Tech Deals

Meta’s planned purchase of Manus, an AI start-up with Chinese roots that relocated operations to Singapore prior to the deal, has drawn attention because it encompasses cutting-edge artificial intelligence technology with potential applications in multiple sectors. Chinese authorities are reportedly examining the transaction under export-control and national security criteria, raising the possibility of intervention despite the company’s offshore domicile. Such reviews are relatively rare but signify China’s desire to assert influence over foreign transactions involving advanced technology with cradle-to-global supply-chain links.

The regulatory interest reflects a growing pattern among major economies to scrutinise cross-border tech transactions more closely. In the United States and European Union, foreign acquisitions in sectors like AI, semiconductors, and cybersecurity are subject to national security reviews and investment screening mechanisms designed to protect critical infrastructure and intellectual property. China’s review echoes this trend but is also shaped by its strategic goal of fostering domestic technological self-reliance while limiting the outflow of advanced capabilities that could bolster foreign competitors, particularly American platforms that compete directly with Chinese digital champions.

For Meta, the regulatory probe introduces uncertainty and potential delay. Technology companies increasingly focus on AI acquisition to diversify product portfolios and scale research and deployment efforts, and delays in such deals can affect development timelines and investor confidence. Manus’s relocation to Singapore suggests an effort to sidestep stricter Chinese controls, but Beijing’s willingness to review the transaction underscores how global AI supply chains remain tightly interlinked and politically sensitive. Firms operating in this space now face a complex web of regulatory environments where geopolitical competition and national security priorities increasingly shape deal outcomes.

Beyond the immediate implications for Meta and Manus, the review signals a broader shift in China’s regulatory philosophy toward foreign investments that intersect with strategic technologies. As Beijing seeks to navigate economic competition with the United States and reinforce domestic innovation ecosystems, Chinese authorities appear poised to adopt tools that exert leverage in cross-border tech deals. This development could reshape how multinational tech firms assess risk and pursue acquisitions, particularly in high-stakes fields such as AI, cloud computing, and data infrastructure, where national interest considerations increasingly influence commercial decisions.