Khaberni - The Financial Times reported that China has prevented the American company Meta, which owns Facebook and Instagram platforms, from acquiring the emerging Manus AI company for two billion dollars amid fierce competition between Washington and Beijing for control of the technology sector.
The regulatory authorities for technology companies in China issued a statement today, Monday, as reported by the newspaper, stating that the parties involved in the deal have been informed that it has been cancelled, after investigating the possibility of its violation of China's investment rules.
The National Development and Reform Commission in China stated, according to the statement, that it would ban "foreign investment" in Manus.
The Financial Times mentioned that Meta's attempt to acquire Manus would be "complicated," as described by the newspaper, because Meta has already integrated Manus into some of its tools.
Manus AI was founded in China, but it moved its headquarters and main team to Singapore last year after receiving American funding for its activities.
The acquisition deal of Manus was scrutinized by multiple Chinese entities, and the Chinese authorities prevented two of the company's founders from leaving its territory until the audit process in the deal ended in rejection.
This decision comes before an upcoming summit expected to bring together US President Donald Trump and his Chinese counterpart Xi Jinping in Beijing during May, where the leaders are expected to discuss complex trade issues between the two countries, which are the largest economies in the world.
Chinese Restrictions on American Investment
In a related context, Reuters, citing Bloomberg, reported that China intends to prevent technology companies, including leading AI startups, from accepting American investments without government approval.
The report, which the agency presented citing informed sources, indicated that Chinese regulatory bodies, including the National Development and Reform Commission, recently instructed a number of technology companies to reject American investments in funding rounds without explicit approval.
The report stated that the AI startups Munshot AI and Step Fun were among the companies that received these instructions.
The report added that the regulatory bodies also decided to impose similar restrictions on ByteDance, owner of the TikTok app, and do not want the company to approve selling secondary shares to American investors without government approval.
Concerns Linked to National Security
Bloomberg mentioned that these measures aim to prevent American investors from acquiring stakes in sensitive technologies linked to Chinese national security.
This intensified scrutiny followed Meta's attempt to acquire Manus, amid concerns about advanced technology companies moving abroad.
American capital has played an important role for years in the Chinese technology sector, starting from companies like Sequoia Capital and BenchMark pumping investments in China to the deep operational relationships that link companies such as Apple, Microsoft, and Tesla with China.
Washington also imposed its own restrictions earlier this year, limiting American investments in some Chinese companies working in areas such as artificial intelligence, semiconductors, and quantum technology, citing security concerns.
