If it can’t stop the Meta-Manus AI deal, how can Beijing exert its authority?

It could be “time-consuming”, “complex” and “difficult” for Meta Platforms to unwind its acquisition of Manus, an artificial intelligence start-up that originated in China, given how far the deal has gone, according to analysts.

Beijing’s order on Monday blocking the US$2 billion deal came roughly four months after the acquisition was announced. During that time, Manus – developer of what it described as the world’s first general AI agent – provided Meta employees with unlimited-usage accounts, and some Meta teams held meetings and exchanged ideas with Manus staff members, according to a Meta employee.

The integration proceeded even though Beijing announced a review of the transaction days after its announcement. The Manus team members moved into Meta’s offices in Singapore and were granted Meta corporate accounts and other access, the South China Morning Post reported in February.

As Manus members have been integrated into Meta, “disentangling them … is going to be tricky”, said Paul Triolo, senior vice-president for China and technology policy lead at DGA-Albright Stonebridge Group.

“Unwinding the deal in practice will be time-consuming and complex,” said Yuwen Pei, a partner at law firm Lifeng Partners, adding that once Manus’ core technology had been absorbed into Meta’s ecosystem, restoring the status quo would be extremely difficult.

“Given the acquisition has gone through, with employees and assets already integrated, and investors paid, it’s difficult to see how an unwinding would be accomplished,” said Tom Nunlist, associate director of tech and data policy at research consultancy Trivium China.

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