Chinese Authorities Oppose: Meta Considers Withdrawing Manus Acquisition

WSJ Reports Citing Sources
China Opposes on National Security Grounds
Integration of Technology and Organization... Burden of Reversal

Meta is reportedly considering withdrawing its acquisition of Chinese AI company Manus due to opposition from Chinese authorities.

An image showing Meta and Manus placed side by side. Photo by Reuters and Yonhap News.

The Wall Street Journal (WSJ) reported on April 27 (local time), citing sources familiar with the matter. This move comes after Chinese authorities banned the approximately 2.5 billion dollar deal, citing national security concerns.

Manus is a developer of AI agent technology. The AI agent, also called Manus, has drawn considerable attention in the market and has been referred to as the "second DeepSeek." Since acquiring the company in December last year, Meta has integrated related technology into its own services.

Chinese authorities believe they have the authority to demand the withdrawal of the acquisition, on the grounds that the company is still considered a Chinese firm. According to Chinese law, foreign investment transactions that may impact national security are subject to review.

The Chinese government has reportedly set a deadline for Meta to restore the deal to its original state within the next few weeks. It has also demanded that all data and technology already integrated into Meta's services be returned. Failure to comply may result in sanctions.

According to the WSJ, this action is interpreted as a warning to Chinese startup founders seeking to transfer technology overseas. Amid rising tensions between the United States and China, both countries have been tightening export controls and investment restrictions.

Xiaohong, the founder and CEO of Manus, and Chief Science Officer (CSO) Ji Yichao have also been banned from leaving China by the authorities after the government began reviewing possible violations of technology export regulations related to Meta's acquisition of Manus in January. According to a report by the Financial Times (FT), they have been investigated for possible violations of foreign direct investment (FDI) regulations concerning the Chinese entity.

There are also concerns in the market that this decision could lead to a decline in foreign investment. Major Chinese tech companies such as ByteDance and Alibaba also initially relied on foreign capital in their early stages.

This content was produced with the assistance of AI translation services.