Chinese authorities are currently scrutinizing Meta's proposed $2 billion acquisition of the AI platform Manus, with a particular focus on whether this deal breaches China's technology export regulations. The Ministry of Commerce has launched an assessment to ascertain whether the transfer of the Manus team and its technology to Singapore, followed by their sale to Meta, necessitates an export license. At present, the review is still in its nascent stages. Should it be concluded that a license is indeed required, China retains the right to intervene in the transaction. This deal has garnered significant attention and could potentially establish a precedent for Chinese AI startups in the future. Nevertheless, some experts contend that Manus's technology does not constitute core technology, thereby diminishing the urgency for immediate intervention. The relocation of Manus to Singapore is closely tied to financial backing from U.S. venture capital firms, a move that had previously prompted a compliance review by the U.S. Treasury Department. Cui Fan, a professor at the University of International Business and Economics, posits that the review should primarily focus on determining whether the Manus team developed any technologies subject to export controls while operating in China. If evidence surfaces indicating that restricted technologies were exported without proper authorization, the parties involved may be held legally accountable.
