China is reviewing whether there were any irregularities in Meta's $2 billion acquisition of Manus.

According to a Financial Times report citing sources familiar with the matter, Chinese officials are reviewing Meta's $2 billion acquisition of the artificial intelligence platform Manus, assessing potential export control violations and determining whether a Chinese export license is required to transfer Manus's staff and technology to Singapore. While the review is in its early stages and does not necessarily lead to a formal investigation, the licensing requirement could provide China with a way to influence the deal, including, in extreme cases, attempting to force parties to abandon it.

One source indicated that the deal has attracted official attention due to concerns that it could incentivize Chinese startups to relocate their entities out of China to circumvent domestic regulations. However, a second source noted that Manus's product (an AI assistant) is not considered a core technology critical to China, thus reducing the urgency of intervention.

The Financial Times states that opening a second headquarters or office in Singapore has become so common among Chinese companies seeking global clients that this practice has been dubbed "Singapore cleansing," referring to companies attempting to shed the geopolitical sensitivities associated with operations in China. (Source: Financial Times)