Facebook Fight Shows Beijing Determined To Keep Chinese AI Out Of US
China has blocked Meta's $2 billion acquisition of Manus, a Chinese-founded AI startup that relocated to Singapore, highlighting Beijing's determination to retain control over strategically sensitive technology. Despite moving its headquarters and key personnel abroad, Manus was still subject to Chinese regulatory oversight due to its origins and operations in China. The decision underscores growing concerns over the transfer of AI talent, data, and technology out of China, even through corporate restructuring in third countries like Singapore.
- ▪China's National Development and Reform Commission blocked Meta's acquisition of Manus after a three-month review, citing compliance with laws and regulations.
- ▪Manus co-founders Xiao Hong and Ji Yichao were placed under exit bans by Chinese authorities, preventing them from leaving the country.
- ▪Manus relocated its headquarters and core staff to Singapore in July but continued to have business operations in China.
- ▪The AI startup had raised $75 million in funding led by a U.S. venture firm and claimed rapid growth before the acquisition attempt.
- ▪Beijing treats the transfer of AI models, data, and talent developed in China as a technology export, regardless of a company's legal domicile.
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By Micah McCartneyChina News ReporterShareNewsweek is a Trust Project memberSee more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.China's government has blocked Meta’s acquisition of a Chinese start-up’s artificial intelligence agent, demonstrating the lengths to which Beijing will go to keep its technology out of the U.S.'s hands. Manus created waves when it was released onto the market by its founders Xiao Hong and Ji Yichao last March. Unlike chatbots such as ChatGPT which require user prompts, Manus is supposed to function automatically to complete tasks with minimal human direction. It immediately attracted interest and within months had raised $75 million in a funding round led by a U.S. venture firm.
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