The Meta-Manus deal ignites a regulatory conflict between Washington and Beijing

 

Artificial intelligence between America and China

The Meta-Manus deal ignites a regulatory conflict between Washington and Beijing

Meta's acquisition of the AI ​​assistant platform Manos for approximately $2 billion has sparked mixed reactions between the United States and China, in a scenario that reflects escalating regulatory tensions surrounding cross-border AI technologies.

While US regulators appear confident in the legality of the deal, despite previous reservations about Benchmark's investment in Manus, Chinese authorities are showing greater caution, according to the Financial Times.

The controversy began at the start of the year, when Benchmark led a funding round for the Manos platform, sparking criticism within the United States.

At that time, US Senator John Cornyn voiced his objection via the "X" platform, and the US Treasury Department opened preliminary investigations under new rules restricting US investments in Chinese artificial intelligence companies.

These pressures were enough to push Manus to move its headquarters from Beijing to Singapore, in a move described as part of a gradual dismantling of the relationship with China, according to a Chinese university professor who wrote about the matter via the WeChat platform.

But the picture later changed. Chinese authorities are now investigating whether the Meta deal violates technology export laws, which could give Beijing leverage that was not initially on the table.
The review, according to reports, focuses on whether Manus needs an export license when moving its core team from China to Singapore, a practice that has become so common it is called "Singapore laundering".

While the Wall Street Journal recently suggested that China has limited tools to influence the deal because of Manus's presence in Singapore, developments in recent days indicate that this assessment may be premature.

Beijing fears the deal will encourage other Chinese startups to move their operations abroad to circumvent local censorship.
In this context, Winston Ma, a law professor at New York University and a partner at Dragon Capital, said that a smooth completion of the deal would open a new path for emerging artificial intelligence companies in China.

Precedents suggest that China may indeed intervene, as it has previously used similar mechanisms to control technology exports during the crisis of trying to ban TikTok under US President Donald Trump.
In fact, a Chinese professor warned via WeChat that the founders of Manos could face criminal liability if it is proven that they exported restricted technologies without a license.

On the other hand, American analysts see the deal as a win for Washington, considering it evidence of the success of American investment restrictions in attracting Chinese talent to the American ecosystem.
A Financial Times report quoted an expert as saying that the deal shows that the artificial intelligence system in the United States is more attractive at the moment.

It remains too early to determine whether these complications will affect Meta's plans to integrate Manos' technologies into its products, but what is certain is that the $2 billion deal has become more complicated than expected.