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Insider: China is Reviewing Meta's $20 Billion Acquisition of Manus for Potential Violations
BlockBeats News, January 7th, according to the Financial Times, citing people familiar with the matter, Chinese officials are reviewing Meta's $2 billion acquisition of the artificial intelligence platform Manus, evaluating whether there is potential export control violation, assessing whether transferring Manus's employees and technology to Singapore would require a Chinese export license. Although the current review is still in its early stages and may not necessarily lead to a formal investigation, the requirement for a license could provide China with a lever to influence the transaction, including attempting to force parties to abandon the deal in extreme cases.
One of the people familiar with the matter said that the reason this deal has attracted official attention is due to concerns that it may incentivize Chinese startups to move entities out of China to evade domestic regulations. However, a second person familiar with the matter pointed out that Manus's product (an AI assistant) is not seen as a crucial technology for China, reducing the urgency for intervention.
The Financial Times stated that setting up a second headquarters or office in Singapore has become very common among Chinese companies seeking global clients, to the extent that this practice is referred to as "Singapore washing," implying that businesses are trying to shed the geopolitical sensitivity associated with operating in China.
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