With Meta-Manus AI deal ‘difficult’ to undo, how will Beijing exert its authority?

Beijing's order to block Meta's $2 billion acquisition of Manus, the developer of what it claims is the world's first general AI agent, comes after significant integration had already occurred. According to analysts, the deal is now 'difficult' to undo. Manus employees moved into Meta's Singapore offices, were granted corporate accounts and access, and provided Meta staff with unlimited-usage accounts. Some Meta teams held meetings and exchanged ideas with Manus staff, even as Beijing launched a review days after the deal was announced.

Paul Triolo, senior vice-president at DGA-Albright Stonebridge Group, said disentangling the teams will be 'tricky.' Yuwen Pei, a partner at Lifeng Partners, added that unwinding will be 'time-consuming and complex,' especially since Manus' core technology has likely been absorbed into Meta's ecosystem. Tom Nunlist of Trivium China noted that with employees, assets, and payments already integrated, restoring the status quo seems nearly impossible. The case underscores how US-China tech competition now extends beyond chips and models to engineering and product design.