China bans Meta from buying AI platform Manus

Shanghai.- Chinese authorities announced on Monday a veto of the agreement by which the US technology giant Meta acquired the Chinese artificial intelligence (AI) platform Manus for 2 billion dollars. In a brief statement published on its website, the National Development and Reform Commission (NDRC, the main economic planning body of the Asian country) indicates that it has "prohibited foreign investment" in Manus and that it has "demanded that the parties involved" cancel the operation. The agreement, announced at the end of December, had been an unusual case in which a US firm acquired a Chinese technology company despite the trade war that both powers have been waging since 2018.

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The decision was announced today by the department in charge of investigating the security of foreign investments, which limited itself to indicating that it was taken "in accordance with the laws and regulations" of the country, without offering further details. In early January, Beijing had announced that it would "evaluate and investigate" the fit of the operation within the legal framework governing controls on the sale abroad of technology and foreign investment. "Companies that carry out investments abroad, export technology, transfer data or agree to cross-border mergers and acquisitions must comply with Chinese laws and follow legal procedures," said the spokesperson for the Ministry of Commerce, He Yadong.

The Chinese Investigations Against Manus

The Chinese investigations against Manus came about due to the company's move to Singapore and the subsequent sale of the platform to the American technology group, owner of Facebook, Instagram or WhatsApp, all of which are prohibited in Chinese territory. China employed similar investigations to thwart the forced sale of TikTok during Donald Trump's first term in the United States (2017-2021). According to experts, Manus's exit from China occurred as a result of US restrictions on investment in technology in the Asian country, in an attempt to distance itself from the networks of regulators in both countries, embroiled in a tit-for-tat of limitations and reprisals since the beginning of the trade war. In fact, that change of headquarters took place after a funding round led by the American company Benchmark. Error en el proceso de traducción In recent years, several Chinese companies seeking global expansion - for example, Shein - have opted to move their headquarters to Singapore to try to reduce the geopolitical risks of continuing to operate from the Asian giant, something that has also attracted scrutiny from Beijing, which fears that it will precisely become a way to escape the supervision of its regulatory bodies. Error en el proceso de traducción