Meta Fails to Acquire Manus: Beijing Imposes Veto

Meta Fails to Acquire Manus: Beijing Imposes Its Veto

Last December, Meta successfully reached an agreement to acquire Manus, a Chinese start-up specializing in artificial intelligence, for an amount nearing $2 billion. Manus, known for its autonomous AI agent capable of performing complex tasks with minimal human oversight, had attracted the interest of many industry players before being sought after by Meta. However, this transaction did not receive approval from Chinese authorities, who decided to block the deal as early as April. This opposition is now official, putting an end to Meta's ambitions.

Following this decision, Manus announced that it would regain its independence, thus distancing itself from Meta. This announcement confirms China's intention to maintain control over its strategic technology companies. Manus issued a statement to its users, asserting that the company would soon become independent again, allowing it to continue serving its millions of users worldwide.

In a FAQ that followed this announcement, Manus briefly explained the reasons for its return to independence. The start-up indicated that this decision is part of its separation from Meta, a necessary step to comply with regulations in certain regions of the world. This statement highlights the regulatory constraints imposed by Beijing.

The leaders of Manus faced significant pressure from Chinese authorities. From the early months of the year, it seemed unlikely that the outcome of this matter would be different. In March, the Financial Times reported that Manus co-founders Xiao Hong and Ji Yichao had been banned from leaving China during the review of the case. According to the same media outlet, Tencent, a Chinese tech giant, was in talks with Meta to buy back its shares in Manus for a similar amount to what was originally agreed upon.

This situation also marks the end of a common practice among certain Chinese start-ups, which involves relocating to Singapore to benefit from greater freedom than on the Chinese mainland. This phenomenon, dubbed "Singapore-washing," had been tolerated by China for some time but now seems to be called into question by the Manus case.