Key insights
- China's commerce ministry stated support for law-abiding transnational deals amid reports of a review of Meta's acquisition of Chinese AI startup Manus. The review and travel bans on Manus' founders raise concerns about increasing regulatory scrutiny of foreign investments in Chinese tech, potentially dampening future cross-border M&A activity and negatively impacting sentiment towards US tech companies seeking expansion in China.
BEIJING, April 2 (Reuters) - The Chinese government supports companies with transnational operations and technology cooperation deals according to needs and the law, commerce ministry spokesperson He Yadong said on Thursday.
He’s remarks were in response to a question on what measures China would take regarding Meta’s acquisition of Chinese artificial intelligence startup Manus.
China has barred two co-founders of Manus from leaving the country as regulators review whether Meta’s $2 billion purchase of the firm violated investment rules, the Financial Times reported in March.