Meta faces cooling in China again: Ministry of Commerce reviews acquisition case, new rules for cross-border tech mergers and acquisitions are here

The Ministry of Commerce officially initiated a review of Meta’s acquisition of the Manus AI platform and explicitly stated that cross-border corporate investments must comply with Chinese laws and regulations. This is not only a review of a single transaction but also signals China’s new attitude towards cross-border technology mergers and acquisitions—ranging from technology import and export, data outbound, to foreign investment, each step must undergo compliance assessment.

The True Meaning of Policy Review

Spokesperson He Yadong’s response from the Ministry of Commerce appears mild but clearly delineates the red line. The review is not a simple “block,” but an evaluation of whether the acquisition aligns with multiple legal requirements.

Core Legal Dimensions Involved in the Review

Why is Manus acquisition under review

Manus is an AI platform involved in user data processing and technological application. In the current context, any cross-border M&A involving data outbound and AI technology will be subject to strict review. This is not targeted at Meta alone but is a standard process for all cross-border technology mergers and acquisitions.

Meta’s difficulties are not limited to this

According to the latest news, Meta has just suspended its international expansion plan for Ray-Ban smart glasses. This indicates that Meta’s operations in China face pressures not only from policy reviews but also from practical market expansion difficulties. Coupled with this acquisition review, Meta’s technological footprint in China is facing multiple challenges.

Insights for Cross-Border Technology M&A

What does this decision mean

The review by the Ministry of Commerce is not an isolated event but a signal of China’s upgraded regulation of cross-border technology investments. The key word is “compliance”—any merger involving data, AI, or key technologies must withstand joint evaluation by multiple departments.

Will other tech companies face the same review

The answer is very likely yes. Especially for mergers involving the following areas:

• User data processing and storage
• AI algorithms and model technologies
• Cloud computing infrastructure
• Cross-border data flows

Possible Future Trends

Review timeline and outcomes

The Ministry of Commerce stated it will “conduct assessment investigations,” but did not specify a timetable. Based on past experience, such reviews may take several months. The outcomes could be threefold: approval, conditional approval, or rejection.

Long-term industry impact

This event indicates a shift in China’s attitude towards cross-border tech M&A—from relatively open to more cautious and regulated. Future cross-border mergers will need to prepare for compliance in advance, especially regarding data security and technology controls.

Summary

The Ministry of Commerce’s review action reflects the Chinese government’s firm stance on data security and technological independence. For Meta, the outcome of this review could determine the future of its AI business in China. For other tech giants, this is a clear signal—conducting technology investments and mergers in China is no longer optional but mandatory. The threshold for cross-border tech M&A is rising, and companies must conduct thorough legal and policy assessments before investing.