China Expands Review Of Meta's $2 Billion Manus Acquisition To Cross-Border Currency Flows, Tax Issues: Report

• The report added that Chinese authorities are concerned about whether a U.S. firm was gaining control of a potentially advanced technology from the country.
• Their concerns also include issues surrounding possibly sensitive data of Chinese users.
• China’s commerce ministry’s ongoing review includes an assessment into whether the relocation of Manus’ staff and technology to Singapore and its subsequent sale to Meta required an export licence under Chinese law.

China has reportedly expanded the review of Meta Platforms Inc.’s (META) $2 billion deal to acquire Manus AI.

According to a Bloomberg report citing people familiar with the matter, Chinese authorities are now investigating potential violations of cross-border currency flows, tax accounting, and overseas investments.

This comes after Chinese regulators launched a review to check if Meta’s acquisition of the AI startup violated the country’s national security or tech export rules.

Meta shares were down nearly 1% in Friday’s pre-market trade. Retail sentiment on Stocktwits around the company was in the ‘bullish’ territory, with message volumes at ‘high’ levels.

China’s Concerns With Manus Deal

The report added that Chinese authorities are concerned about whether a U.S. firm was gaining control of a potentially advanced technology from the country. Their concerns also include issues surrounding possibly sensitive data of Chinese users.

Earlier this month, China’s commerce ministry reportedly launched a review into the Meta-Manus deal. This included an assessment into whether the relocation of Manus’ staff and technology to Singapore and its subsequent sale to Meta required an export licence under Chinese law.

Why Did Meta Acquire Manus?

Meta acquired Manus in December, stating that this will help the company unlock opportunities for businesses across its products. The company said that Manus’ talent will join Meta to deliver general-purpose agents across its consumer and business products, including in Meta AI.

“Manus has built one of the leading autonomous general-purpose agents that can independently execute complex tasks like market research, coding, and data analysis. We will continue to operate and sell the Manus service, as well as integrate it into our products,” the company said in its announcement.

META stock is down 2% year-to-date, but up 4% over the past 12 months.

Also See: Trump Reportedly Says A Piece Of Golden Dome Will Be On Greenland — Dow Futures Rise Over 100 Points

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