Recently, the Office of China’s Foreign Investment Security Review Mechanism (affiliated with the National Development and Reform Commission) officially prohibited a foreign-funded entity from acquiring the AI company Manus project, mandating the termination of the deal. Established by Chinese entrepreneurs and headquartered in Singapore, Manus specializes in core technologies classified as vital information technology and critical technologies pertinent to national security, as outlined in the "Measures for the Security Review of Foreign Investments." The acquiring entity, Meta, a prominent U.S. tech conglomerate, proposed a transaction exceeding US$2 billion, marking one of the initial instances of a major U.S. tech firm attempting to acquire a Chinese-backed startup. This decision, made in accordance with a unified legal framework and procedural standards, is intended to protect economic security and maintain market order. Furthermore, it underscores the sophistication of China’s regulatory framework in critical technology sectors, fostering a more stable and predictable business environment.
